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

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.