{"title":"The Role of Dual-Self Constructs in Determining Payment Card Choice: Insights for Working with Credit Card Borrowers","authors":"Laura C. Ricaldi, Sandra J. Huston","doi":"10.4148/1944-9771.1177","DOIUrl":null,"url":null,"abstract":"Evidence has shown that consumers are better off using credit cards rather than debit cards as a payment choice (King & King, 2005). This assumes that credit card payers are “convenience users” and do not carry a balance. However, there are habitual credit card borrowers (“revolving users”), as well as those that elect to use debit cards, even though the costs outweigh the benefits. By examining the determinants of payment choice, with a specific focus on dual-self constructs (attitudes, myopia, and financial sophistication), results from this study can provide insight for financial professionals to help mitigate the incidence of revolving credit card users. Using data from Survey of Consumer Finances (SCF) collected between 1998 and 2013, results indicated that while myopia does not explain variation between revolving credit and debit card users, differences in attitudes exist. All dual-self constructs discriminated between revolving and convenience credit card users, with attitudes having the greatest effect. Combining results from these payment choice profile comparisons suggested that financial professionals may find value in initially encouraging revolving credit card users to be debit card users, while working to change credit attitudes, with the goal of transitioning these former revolvers to convenience credit card users.","PeriodicalId":37600,"journal":{"name":"Journal of Financial Therapy","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Financial Therapy","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.4148/1944-9771.1177","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"Social Sciences","Score":null,"Total":0}
引用次数: 1
Abstract
Evidence has shown that consumers are better off using credit cards rather than debit cards as a payment choice (King & King, 2005). This assumes that credit card payers are “convenience users” and do not carry a balance. However, there are habitual credit card borrowers (“revolving users”), as well as those that elect to use debit cards, even though the costs outweigh the benefits. By examining the determinants of payment choice, with a specific focus on dual-self constructs (attitudes, myopia, and financial sophistication), results from this study can provide insight for financial professionals to help mitigate the incidence of revolving credit card users. Using data from Survey of Consumer Finances (SCF) collected between 1998 and 2013, results indicated that while myopia does not explain variation between revolving credit and debit card users, differences in attitudes exist. All dual-self constructs discriminated between revolving and convenience credit card users, with attitudes having the greatest effect. Combining results from these payment choice profile comparisons suggested that financial professionals may find value in initially encouraging revolving credit card users to be debit card users, while working to change credit attitudes, with the goal of transitioning these former revolvers to convenience credit card users.
期刊介绍：
All manuscripts received are blind peer reviewed. Because of the clinical focus of the journal, authors are encouraged to address the conceptual methodology underlying the research and to describe the intervention methods employed. Although detailed reviews of literature are accepted, reviewers tend to appreciate manuscripts with a very strong introduction describing the purpose of the study, a well described conceptual framework, concise presentation of findings, and a thorough discussion of results that are applicable to practicing financial therapists, financial counselors, psychologists, marriage and family therapists, and others who regularly work in clinical settings. Topics of interest to readers and reviewers include: *Pre- and post-test analyses of counseling and financial therapy methods *Tests showing the effectiveness of financial education in changing both attitudes and behaviors *Financial therapy trends *Regulation of financial therapy *Ethical issues associated with financial therapy *Practice management techniques *Client assessment and management procedures *Employee counseling and therapy *Financial therapy research methodological and statistical procedures *Book reviews and letters The Journal of Financial Therapy is sponsored by the Financial Therapy Association and currently housed within the Institute of Personal Financial Planning at Kansas State University. The Journal provides a forum for those who are interested in financial therapy with a forum for sharing models, theory, ideas, strategies, and therapy approaches.
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