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4. Recent Developments in the Credit Card Market and the Financial Obligations Ratio.

Author

Johnson, Kathleen W. and Sum, Tsz-Yan Doris

Subjects
*CREDIT cards, *ECONOMIC indicators, *HOUSEHOLDS, *INTEREST rates, *PERSONAL finance
Abstract

The article highlights developments in the credit card market and the financial obligations ratio as of October 2005. Key market developments are improvements in credit-securing technology and the advent of risk-based pricing of credit card debt which have increased the share of households, variation in credit card interest rates and the increased usage of credit cards by households. INSETS: Theories of Credit Card Interest Rate "Stickiness";Substitution between Credit Cards and Other Forms of Credit.

Published
2005
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