SPENDING BEHAVIOR OF CREDIT CARDHOLDERS

A Research Proposal
Presented to the Faculty of the
School of Business Administration and Accountancy
University of Saint Louis
Tuguegarao City, Cagayan

In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration

Bayucan, Joan Valerie P.

Mamauag, Vanessa Marie B.
Salviejo, Marcelino III L.
Soriano, Felipe Jr. D

March 2016
 APPROVAL SHEET

In partial fulfillment of the requirements for the Degree of Bachelor of Science in

Business Administration Major in Financial Management, this research proposal entitled
“SPENDING BEHAVIOR OF CREDIT CARDHOLDERS” has been prepared and submitted by
Bayucan, Joan Valerie P., Mamauag, Vanessa Marie B., Salviejo, Marcelino III L. and Soriano,
Felipe Jr. D.

______________________________
Mrs. Fe-Rose Anne Ragojos, MBA
Instructor

Approved by the panel of examiners on March 04, 2016 with a grade of_______.

Panel of Examiners

_______________________________ _______________________
Mrs. Karen Joy A. Catacutan, MBA Mrs. Gladys Tumbali, MBA
Member Member

Accepted as partial fulfillment of the requirement of Bachelor of Science in Business

Administration Major in Financial Management.

_____________________ _________________________________
Date Emmanuel James Pattaguan, Ph. D
Academic Dean
 Table of Contents

Introduction ………………………………………….. 1
Statement of the Problem ………………………………………….. 2
Significance of the Study ………………………………………….. 2
Literature Review
- Underpinning theory ………………………………………….. 2
- Literature Review by themes ………………………………………….. 3
Hypothesis ………………………………………….. 6
Research Paradigm ………………………………………….. 6
Methodology ………………………………………….. 6
References ………………………………………….. 7
Appendices
- Literature Matrix ………………………………………….. 9
- Variable Matrix ………………………………………….. 31
- Data Collection Form ………………………………………….. 34
Introduction

Background of the Study

Credit card system is a type of retail lending named after the plastic card issued by the
credit provider to its clients. A credit card is a plastic card issued by the banks and their
subsidiary credit companies that allows the holder to purchase goods and services on credit up
to a predefined credit limit (Nya mongo, 2009). Hence, a credit card is a financial instrument that
permits card holders to obtain funds at interest.

See-San Juan (2011) described how the credit card industry in the Philippines came to
be. Credit card business in the Philippines had a very rough start. The very first credit card was
introduced in the Philippines back in the 1950’s but the corporations that carried it closed. After
two decades (1980’s), new players surfaced in the market but they ended up having the same
fate as that of their predecessor. It was only in 1990’s that the credit card industry reached
stability with only three card issuers dominating the market – Equitable Banking Corporation
with VISA, Philippine Commercial International Bank with Bankcard, and Security Bank & Trust
Company with Diners Club. By the end of the decade, the oligopolistic market became a
competitive market as more and more financial institutions joined the industry.At first only the
professional and those coming from the middle and upper class family were able to have a
credit card but due to the presence of competition in the market, banks already allowed to lend
credit card to borrowers. With this benefits and convenience that credit card offers it has
increasingly substituted the traditional cash transaction.
In the study presented by Kotler (2000) about spending behavior it revealed on how the
individuals, groups and organizations select, buy, use and dispose of goods, services, ideas or
experiences to satisfy their needs and desires.Spending habits has changed with the usage of
credit cards throughout the world. The credit card was initially used as a common payment
mode for luxuries, such as travel, and accommodation. However, it is now increasingly used for
purchasing small items of convenience in our daily lives ranging from the esoteric to the
mundane (Lee, 2000). Individuals spend to satisfy their needs and wants. Indeed, they need to
buy some materials with a high cost but one problem that may arise is they don’t have enough
money to pay and because it is very risky to hold a large amount.Now a days, it is better to have
a credit card so that we purchase thing we want to. Although credit cards are not for everyone,
they are definitely an important luxury for many. If you’re thinking about getting one, chances
are, you’re making a pretty good decision. Just remember that it is important to use your card
properly and you should be fine.
Wendy Ming-Yen, et. al., (2013) in their findings showed that the age, income, and
marital status have significant correlation with credit cardholders’ spending behavior. This study
will be conductto know the spending behavior of the credit cardholders including its effect to
spending behavior. The researchers want to know whether the credit cardholder spend more or
less when they are buying their daily needs or their luxuries using credit cards.
Statement of the Problem
The researchers seek to study the behavior of credit cardholders in Tuguegarao City with
regards to their spending. Specifically it aims to answer the following questions:

1. What is the profile of credit cardholders in terms of:

a. Occupation
b. Sex
c. Civil Status
d. Age
e. Income Level
f. Number of children
2. What is the effect of credit card on the spending behavior of its holder?
3. Is there a significant relationship on the spending behavior of the credit cardholder when
group according to their profile?

Significance of the study

Findings of this study will give a good overview in the spending behavior of credit
cardholders and will provide useful outcomes to the younger generation especially students in
order to increase their awareness regarding their spending using credit cards. It will also benefit
the credit cardholder because they will become more conscious on their spending and will also
help them to achieve a proper management of credit card expense. Moreover, it will also benefit
the public because they will become more aware on what are the possible effects of credit card
to their spending.
Literature Review
Underpinning Theory
This study was grounded on the Theory of Planned Behavior proposed by Icek Ajzen
(1991). According to this theory, spending behavior may be predicted either from stated
intention or from the person’s estimate of their purchase probability. The theory of planned
behavior is an appropriate theory for studying credit card spending behavior of consumers.
According to the theory, a person’s behavior can be predicted by intention, which is predicted by
the person’s attitude toward the behavior, subjective norms, and perceived control. An attitude
toward a behavior is defined as one’s positive or negative evaluation of the particular behavior
based on the person’s beliefs. A subjective norm is a person’s perception of whether significant
referents approve or disapprove of the behavior. Perceived control is the perceived difficulty of
performing the behavior.
It is difficult to predict the spending behavior of people specially those credit cardholder,
because it’s hard to control the expenditure using credit card payments. In our study about
spending behavior we can say that there are factors that can influence the spending behavior of
certain individual such as price, taste and preferences and income. We must also consider how
important the product is. As spending-facilitating stimuli (Feinberg, 1986; McCall et al., 2004),
there is growing evidence that credit cards encourage spending . For example, assuming an
employee of a company notice that there is a new brand of his favorite shoes in the market, this
encourages him to purchase the said product using his credit card. His attitude towards the
products implies the factor that increases the spending behavior of the said employee. Also
because of the budgeting effect (Heath, 1995; Heath and Soll, 1996), credit card holders will
most likely forget or underestimate the price of goods and the total amount spent during their
purchasing activities (Soman, 1999), which leads to the problem of overuse (Durkin,
2000).Another scenario about your physiological needs, a married womanwith four children are
about to buy fish as their meal, she observe that there is an increase in the price of fish and she
tend to lessen the quantity of the product she about to purchaseusing credit card. This signifies
the behavior of the individual to control or limit the spending.

Literature Review by Themes

Profile of the Credit Cardholders

In the findings of the research conducted by Wendy Ming-Yen et. al (2013) showed that
that age, income, and marital status have significant correlation with credit card holders’
spending behavior. Occupation, qualifications to apply for credit card, and management of
income vs. expenses are not significantly related to credit card spending behavior among
Malaysians. In addition Ringgold P Atienza (2014) study showed that the type of commodities
purchased with credit card is influenced by age, gender, marital status, educational attainment
and income level but not with the number of dependents and the type of workplace organization.
The credit card ownership is influenced by age, marital status, educational attainment and
workplace organization but not the gender, number of dependents and income level. Findings
also showed that cardholders with the positive attitude towards credit cards were less cautious
of their credit card activities; thus, they were more susceptible to riskier activities than those
cardholders with the negative attitude towards debt. Overall results showed that the credit card
usage pattern varies among different context. Results of this study can help issuing banks for
more effective regulation on credit and collection, as well as organizations that promote financial
education for consumer protection.

The same study proposed by Nur Shahirah Azman and Aminah Shari (2015) showed
that factors such as psychological factors (attitude and locus of control), economic factors and
socio-demographic factors as controlling factor may determine attitudes toward credit card debt
among urban household. Thus this study propose conceptual framework as a guideline to carry
out this study to further level. These factors important due to economic factors alone will not
enough to explain household indebtedness issue and this had been confirm by previous
literature. If indeed other than economic factors such as limitation in income and/or increasing in
cost of living that contribute to household debt, thus the government initiative by giving subsidy
will be ineffective. Due to this reason, psychological factors should be included to investigate
this issue to tackle down what are the dominant factor that induce household to use credit
card.Moreover, the study finds that knowledge, media awareness, perceptions and family
influence are instrumental in determining consumer attitudes toward credit card usage. In more
detail, perceptions are ranked highest, followed by family influence and knowledge. Identifying
such factors helps to provide better information to direct future planning of credit card services.
Importantly, this study provides valuable insight for bank managers to effectively oversee credit
card services (Shafinar Ismali and Hanudin Amin 2014)
 Main findings of the study made by Siti Rahayuet. al (2013) revealed that there are
significant differences in credit card usage among credit card holders of different personal
background. However, simple t-tests showed there is no significant difference in credit card
usage among users of different gender. This study has significance in terms of providing useful
information for developing customer profile and revising credit card promotional strategies.
Credit card is used in different purchase situations. Credit card holders seemed to use credit
card for purchases of basic needs such as fuel/ petrol, clothing and health services. As for retail
purchases, users seemed to use their credit cards mostly for accommodation/hotel, dining and
groceries shopping. The findings of the this study concurs well with the findings of Ahmed
(2010) which essentially document significant relationship between customer profile and credit
card usage level among credit card holders in Malaysia. Similarly, the findings of this study are
also consistent with those of Gan et al. (2008) for the case of credit card users in Singapore

Effects of Credit Card on Spending Behavior of its Holder

The main conclusion of the study made by Prof. Cecil Koparaland and Nuri Calik (2014)
showed that compulsive buying behavior is significantly and positively related with overspending
and with, risk-taking, power-seeking, self-confidence, self-esteem and excitement. On the other
hand no statistical evidence is found between compulsive buying behavior and prestige-seeking
A significant positive relationship is found between compulsive buying behavior and price
sensitivity, where price conscious consumers agreed with the idea that using credit cards drive
them to spend more and they admit (strongly agree) that they lose control from time to time and
do purchases that they cannot afford with their credit card. This study shows that whether who
exhibited impulsivity were less likely to possess a credit card while those with a higher risk
tolerance were more likely to carry a credit card and it also indicated that those who were
impulsive were predicted to carry a credit card balance, confirming our hypotheses. Every one-
point increase in impulsivity was associated with an approximate 10% increase in the likelihood
of carrying a balance. The analysis also suggested that as a mother’s time preference increased
(i.e., became more patient) the more likely the child was to carry a balance on his or her credit
card (Justin M. Henegar et. al. 2013).The findings of the research is that Young generations
around 30’s who hold umbers of credit card and personal loans are an example of today’s
Malaysia. Many people claims that the socio economy status of someone is reflected by the
number of credit cards they own. Without realizing the consequences of the usage of credit card
beyond their limit, more and younger peoples aged around 30’s were declared bankrupt due to
credit card debts.(Kaviyarasu Elangkovan 2012)

The main finding of the study presented by Loewenstein and ElifIncekara (2012)
revealed that use of credit cards did not significantly, on average, increase spending was a
surprise to us. Indeed, based on a firm belief that credit cards do promote spending, one of the
authors of this paper has argued, in print Loewenstein and O’Donoghue(2008), that credit cards
should be banned (and replaced with a combination of debit cards and/or charge cards, which
must be paid off in full at the end of each month). Although we believe that, as one of the first
randomized controlled experiments to examine the impact of credit cards on spending, the study
and its results are worthy of note, we also believe that, even beyond the usual caveats, it is
important to take account of limitations of this study and of reasons why the results should be
treated with caution ElifIncekara et. al.( 2012). Furthermore, research conducted by Park and
Burns (2005) shows that fashion orientated consumers are heavy credit card users. Consumers
who tend to have fashion leadership and know the importance of being well dressed might use
their credit card more while those who have anti–fashion attitude are least likely to use their
credit cards.
 One strategic implication of this finding conducted by Dr. Kemal Kurtulus (2012) showed
that as credit card usage for the expenditures of clothing, department stores, petrol and
supermarket is saturating, many credit card issuers try to push credit cards respectively on to
grocery stores, education institutions, drugstores, transportation, furniture stores, health
institutions, construction equipment markets, and consumer and white goods stores. Marketers
have to emphasize the usefulness of credit cards for these kinds of purchases and they have to
develop effective marketing strategies and promotions to motivate consumer to use credit card
for the mentioned purchases. Another study showed that misuse of credit cards significantly
increased compulsive buying among individuals with high levels of anxiety. Credit card usage
partially mediates the relationship between compulsive buying and three variables established
in the literature: power-prestige, retention-time and anxiety. Credit card usage did not
significantly mediate the effect of distrust (or price sensitivity) on compulsive buying behavior.
Respondents’ price sensitivity did not by itself reduce levels of usage, though it did have an
effect on overspending in conjunction with the other factors studied. The key themes that
emerged from the focus-group interviews enhanced the survey’s results with greater in-depth
understanding. (Tania Modesto et. al. 2013)

The study of Keith Wilcox et. al. (2011) demonstrated that outstanding credit card debt
increases spending for consumers with high self-control. They also show that this effect can be
eliminated by increasing the available credit on the credit card. Thus, when the available credit
is low, consumers with greater self-control increase spending, but when the available credit is
high, they reduce spending. The results extend the literature on goal violation and self-control
and offer insights into consumer decision making and consumption patterns under conditions of
debt. Although the present study replicates this finding in predicting well-being among American
college students, social comparison does not predict financial well-being or debt among
Brazilian college students. Further, in both samples, although attitudes and social comparison
were related to perceptions of well-being, perceived behavioral control was not.

Active card holders in the study made by Ricky Chan (1997) were operationalized as
those whose monthly card usage rate was over ten times, where as “inactive card holders” were
those whose monthly card usage rate was below ten times. As far as, demography is
concerned, income was found to be the single most important variable influencing the card
usage rate. Specifically inactive card holders were found to earn less than their active
counterparts Paper also examine, to induce less resourceful card holders to increase their card
usage rate, card issuers are advised to strengthen their co-operation with various retailers so as
to turn their cards into the most preferred of payment.
Hypothesis

The researchers hypothesized that there is no significant relationship on the spending

behavior of the credit cardholders when group according to their profile.

Research Paradigm
Independent Variable Dependent Variable

Profile:
Occupation
Sex
Spending Behavior of
Civil Status
Credit Cardholders
Age
Income Level
Number of Children

The profile of the credit cardholders such as occupation, gender, civil status, age,
income level and number of children may affect the spending behavior of the credit cardholder.

Methodology
This study will use descriptive-correlational method. The respondents are the credit
cardholders within Tuguegarao City who will be chosen through purposive random sampling.
Questionnaire is the tool to be used in collecting data and will be floated to 50 respondents.
Questionnaires will be divided into two parts. The first part cover profile of the credit card holder
which includeoccupation, gender, civil status, age, income level and number of children. The
second part will cover the effects of credit card to spending using the 5 – Likert Scale. The data
collected will be analyzed using the Frequency count, percentage and Pearson R.
References

Ahmed, Z U, Ismail, I., Sohail, Sadiq M, Tabsh, I, and Alias, H (2010). “Malaysian consumers'
credit card usage behavior” Retrieved from:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2653577
Chan Ricky (1997) “Demographic and attitudinal differences between active and inactive credit
cardholders–the case of Hong Kong,” Retrieved from: DOI: 10.1108/02652329710189375

Dr. Kemal Kurtulus “Consumer Behavior of Credit Card Users in an Emerging Market”
Retrievedfrom:www.academia.edu/411659/Consumer_Behavior_of_Credit_Card_Users_In_An_
Emerging_Market

Dr. Sudershan Kumar (2013) “Consumers’ Attittude towards credit card: An Empirical Study”
Retrieved from http://www.researchmanuscripts.com/September2013/3.pdf
ElifIncekaraHafalir and George Loewenstein“ The Impact of Credit Cards on Spending: A Field
Experiment” Retrieved from:
https://www.andrew.cmu.edu/user/incekara/CreditCardStudy%202012.09.21

Hye‐Jung Park, Leslie Davis Burns, (2005) "Fashion orientation, credit card use, and
compulsive buying", Retrieved from: http://dx.doi.org/10.1108/07363760510595959

Jamie Richter and Aimee D. Prawitz “Attitudes of College Students toward Credit Cards: A
Comparison of Credit Card User Types” Retrieved from: http://www.fermascholar.org/wp-
content/uploads/2013/10/P3-Attitude-college-students-credit-cards_Prawitz.pdf

Jill M. Norvilitis and Wesley Mendes-Da-Silva “Attitudes toward Credit Card and Finances
among College Students in Brazil and the United States” Retrieved from:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2283901

KaviyarasuElangkovan “Usage of Credit Cards Beyond Limit : A Case Study of Younger

Generations in Malaysia:, Retrieved from: http://www.hrmars.com/admin/pics/1737.pdf

Keith Wilcox, Lauren G. Block, and Eric M. Eisentein, “Leave Home Without It? The Effects of
Credit Card Debt and Available Credit on Spending” Retrieved from:
https://www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/5688/wilcox_leave_home.pdf

Koparal, C., Calik, N., (2014). Bank credit card usage behavior of individuals; are credit cards
considered as status symbols or are they really threats to consumers´ budgets? A field study
from Eskisehir, Turkey Retrieved from: http://www.iises.net/bank-credit-card-usage-behavior-of-
individuals-are-credit-c.html

Leclerc, Kristi “Influential Factors Contributing to College Student Spending Habits and Credit
Card Debt” Retrieved from: http://connection.ebscohost.com/c/articles/80029531/influential-
factors-contributing-college-student-spending-habits-credit-card-debt
Mathur and George (1994), “Use of credit-cards by older American” Retrieved from:
http://dx.doi.org/10.1108/08876049410053276

NurShahirahAzmanand Aminah Shari , “Urban Household Credit Card Debt Behaviour in East
Malaysia: A Conceptual Framework “ Retrieved from:
http://www.ukm.my/fep/perkem/pdf/perkem2015/PERKEM_2015_5B2.pdf

Ringgold P. Atienza “Credit Card Usage Pattern in Ozamiz City, Philippines”,Retrieved from:
doi: http://dx.doi.org/10.7828/jmds.v3i1.626

SitiRahayuHussin, Salina Kassim and NuraienJamal “Credit Card Holders in Malaysia:

Customer Characteristics and Credit Card Usage “Retrieved from:
http://econ.upm.edu.my/ijem/vol7no1/bab07.pdf

Shafinar Ismail, and Hanudin Amin, “Determinants of Attitude towards Credit Card Usage”
Retrived from:
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.685.273&rep=rep1&type=pdf

Tania Modesto Veludo-de-Oliveira , Marcelo Augusto Falciano , Renato Villas Boas Perito ,
(2014) "Effects of credit card usage on young Brazilians’ compulsive buying" Retrieved from:
http://dx.doi.org/10.1108/YC-06-2013-00382

T. Ramayah, Nasser Noor and AizzatMohd. Nasurdin“Cardholders attitude and bank credit
card usage in Malaysia: an explanatory study”http://web.usm.my/aamj/7.1.2002/AAMJ%207-1-
5.pdf

Umar Mohammed Idris “Effects of Islamic Credit Cards on Customer Spending”, Retrieved from:
http://search.proquest.com/openview/30af616c120d1d3638402afed6d5df62/1?pq-
origsite=gscholar&cbl=2026610

Wendy Ming‐Yen Teoh, Siong‐Choy Chong, Shi Mid Yong, (2013) "Exploring the factors
influencing credit card spending behavior among Malaysians" Retrieved from:
http://dx.doi.org/10.1108/IJBM-04-2013-0037
 APPENDICES
Literature Matrix

Major
Method/Data
Problem/ Delineated
Gathering
Researchers Bibliography Central factors/ Major Findings
Tool, Subject
Question/ Variables
Participants
Main Problem

Wendy Ming- Exploring the This paper Demographic Structured The results indicate
Yen factors explores factors questionnaire that age, income,
TeohSiong- influencing factors was and marital status
Choy Chong credit card affecting Spending administered have significant
Shi Mid Yong spending spending behavior on 150 credit correlation with
(2013) behavior behavior of card holders credit card holders’
credit card Credit cards spending behavior.
among
holders in The same goes to
Malaysians
Malaysia. two of the three
International Specifically, items identified
Journal of variables such under banks’
Bank as policies (benefits
demographic given and payment
Marketing,
factors, banks’ policies) and
31. 6. 481 - policies, and attitudes toward
500 credit card money (willingness
holders’ to pay and
attitudes awareness of the
toward money total debt owed).
are examined. Occupation,
qualifications to
apply for credit
card, and
management of
income vs.
expenses are not
significantly related
to credit card
spending behavior
among Malaysians.
Zafar U. "Malaysian The main Psychological Questionnaire Despite the spread
Ahmed, Ishak consumers' purpose of this factors survey in usage and
Ismail, M. credit card paper is to conducted in ownership of credit
attitude;
SadiqSohail, I spending understand Malaysia. cards, few studies
brahim behavior" consumers' psychographi have examined its
Tabsh, Hasbal attitude and c effect on consumer
Asia Pacific
aila Alias, spending debt in developing
Journal of
(2010) behavior using nations Based on
Marketing
an extensive
 and Logistics, credit cards. review of literature,
2. 4. 528- a model is
544. developed to
identify the
psychographic
factors that
influence the
consumer attitudes
toward using credit
cards The paper
found support for
some of the
theoretical
expectations and
lends support to
some of the earlier
deviations reported
in the literature.

Dr. Sudershan “Consumers’ This research Consumers Questionnaire The study

Kumar (2013) Attittude project attitude was attempted at
towards credit constitutes the administered examining why
card: An study of credit Cardholders to the 165 credit card users
Empirical card respondents have general
Study” consumers’ attitudes which they
attitude currently hold about
International towards the credit cards.
Journal of credit cards. Attitudinal
Computing The study was statements
and Business to be evaluated using
Research conducted Likert’s five point
among credit scale revealed
(IJCBR) ISSN
card holders. interesting
(Online) : divergent set of
2229-6166, 4 views. It revealed
,3 -09 - 2013 that the currently
held negative
attitudes might
have developed
partially due to
individual’s
perceptions of the
difficulties faced by
other consumers
and not their
personal
experiences. It also
shed light on
consumers
‘perceptions
 regarding specific
practices of credit
card issuers. The
evidence generated
from the study does
not actually
suggest the
development of
negative views
towards credit
cards from adverse
personal
experiences. Their
opinion about their
own relations with
current credit card
issuers was found
to be more
agreeable than with
other consumers

ElifIncekaraHa “ The Impact To measure Average We gathered The main finding of

falir and of Credit the impact of spending data through this paper, that use
George Cards on payment with floating of of credit cards did
Loewenstein Spending: A credit card as questionnaire not significantly, on
(2012) Field credit cards average, increase
compared with
Experiment” cash on Demographic spending was a
surprise to us.
insurance s included
Journal of Indeed, based on a
company age, gender,
Economics, firm belief that
117(1): 149– employees’ race, credit cards do
185.22, 57-70 spending on education, promote spending,
lunch in a and yearly one of the authors
cafeteria. We household of this paper has
exogenously income. argued, in print
changed some (Loewenstein and
diners' O’Donoghue 2008),
payment that credit cards
medium from should be banned
cash to a credit (and replaced with
card by giving a combination of
debit cards and/or
them an
charge cards,
incentive to which must be paid
pay with a off in full at the end
credit card of each month).
Although we
believe that, as one
of the first
randomized
controlled
 experiments to
examine the impact
of credit cards on
spending, the study
and its results are
worthy of note, we
also believe that,
even beyond the
usual caveats, it is
important to take
account of
limitations of this
study and of
reasons why the
results should be
treated with
caution.

T. Ramayah, “Cardholders The purpose of Demographic Questionnaire This finding

Nasser Noor attitude and this study is to factors s parallels that of
andAizzatMoh bank credit examine the Chan's (1997)
d. Nasurdin card usage in relationship where the active
(2002) Malaysia: an between credit cardholder showed
Socioeconomi
explanatory cardholders' significantly higher
study” c factors
attitudes and scores in attitude
their usage towards "wide
Asian level in order credit card acceptance" and
Academy of to identify usage. "large credit limit".
Management criteria’s that Transaction
Journal,. 7,1, help to convenience allows
January 2002 distinguish cardholders to
between an utilize the functions
active and of credit card by
inactive credit replacing cash and
card user. carry forward their
Since most of expenditure.
the issuing Cardholders might
banks in feel safer and enjoy
Malaysia have more convenience
attempted to than with other
expand their types of payment
credit card mode. On the other
businesses, hand, financial
this study is convenience allows
deemed crucial cardholders to
for the issuing enjoy discounts on
banks since certain promotional
they will be item tied up with
 able to adjust the various
their marketing retailers. This
strategies indirectly reflected
effectively in in more value for
order to attract money as
more active compared to cash
card users. transaction.
Moreover, it also
allows cardholders
to enjoy the short-
term revolving
credit by delaying
payment of
expenses.

Dr. Kemal “Consumer Credit card One strategic

This research Structured
Kurtulus Behavior of is used to implication of this
Credit card questionnaire
(2012) Credit Card examine: To finding is that: as
debt payment
Users in an what extent credit card usage
Emerging Turkish Volume of for the
Market” consumers credit card expenditures of
prefer to use expenditure clothing,
Global credit cards in department stores,
Conference specific Credit card petrol and
on Business purchase usage pattern supermarket is
& Economics
saturating, many
ISBN : 0-
credit card issuers
9742114-6
try to push credit
cards respectively
on to grocery
stores, education
institutions,
drugstores,
transportation,
furniture stores,
health institutions,
construction
equipment markets,
and consumer and
white goods stores.
Marketers have to
emphasize the
usefulness of credit
cards for these
kinds of purchases
and they have to
develop effective
 marketing
strategies and
promotions to
motivate consumer
to use credit card
for the mentioned
purchases
Tania Modesto “Effects of The purpose of Young A structured Results showed
Veludo-de- credit card this study is to consumers, questionnaire that misuse of
Oliveira, usage on assess the was credit cards
Marcelo moderating Compulsive completed by significantly
young
Augusto and mediating buying, 365 young increased
Brazilians’
Falciano and compulsive roles of credit credit card compulsive buying
Renato Villas card usage in users among individuals
buying”
Boas Perito the relationship Credit card with high levels of
(2013) International between usage anxiety. Credit card
Journal of money usage partially
Advertising attitudes (i.e. mediates the
and Marketing power- relationship
prestige, between
to Children
retention-time, compulsive buying
15 Iss: 2,111 distrust and and three variables
– 124 anxiety) and established in the
compulsive literature: power-
buying prestige,retention-
behaviour. time and anxiety.
Credit card usage
did not significantly
mediate the effect
of distrust (or price
sensitivity) on
compulsive buying
behaviour.
Respondents’ price
sensitivity did not
by itself reduce
levels of usage,
though it did have
an effect on
overspending in
conjunction with the
other factors
studied. The key
themes that
emerged from the
focus-group
interviews
enhanced the
survey’s results
 with greater in-
depth
understanding.
Koparal C. Bank credit This study Consumer Stratified This study reveals
Calik (2014) card usage intends to find Demographic sampling that compulsive
behavior of out the “bank s buying behavior is
individuals; credit card significantly and
are credit usage Credit Card positively related
cards behavior” of Usage with overspending
Behavior:
considered as the consumers and with, risk-
status where store taking, power-
Compulsive
symbols or and other Buying seeking, self-
are they really loyalty cards Behavior confidence, self-
threats to are excluded esteem and
consumers´ from this study. excitement. On the
budgets? A Consumers’ other hand no
field study Psycho- statistical evidence
from graphical is found between
Eskisehir, Traits. compulsive buying
Turkey Overspending behavior and
prestige-seeking. A
International
significant positive
Journal of
relationship is
Social
found between
Sciences,
compulsive buying
III(4),75-97.
behavior and price
sensitivity, where
price conscious
consumers agreed
with the idea that
using credit cards
drive them to spend
more and they
admit (strongly
agree) that they
lose control from
time to time and do
purchases that they
cannot afford with
their credit card.
(an inverse
conclusion of what
was expected while
formulating the
hypothesis)
Umar Effects ofThis study Credit card, Questionnaire Study further
Mohammed Islamic Creditaims to find out s deepen to analyze
whether there customer that perception of
Idris (2012) Cards on
is a behavior both credit card
Customer
Spending relationship holders seems to
spending
between favor
The Business Islamic Credit that credit is
& Card and common source of
Management spending of its money and they
Review, 3, 1, holders vis spend more than
November visa 30% of credit limit
2012 conventional per month towards
card holders to consumption
embark the needs. Whereas
comparative the exception found
differences. is that Islamic credit
The study also holders spend less
aims to provide than the
an insight conventional credit
study to the holders in the short
effect of run since they
Islamic Credit acknowledge the
Card on abhor of excessive
spending. debt obligation
in the Islamic
teaching. Hence,
users tend to
discourage bad
debts and over loan
obligation towards
them.
Islamic credit
holders agreed that
the benefits of
Islamic credit card
are quite good and
conventional
holders. The
conventional
holders assume the
perceived risk of
fraud through the
hacking or any fault
through the online
payment
mechanism far
more than Islamic
creit card
management
system. In term of
delivering quality
 services,
conventional
holders outreach to
show preference
over Islamic
holders. Lastly,
Religious factor
seems to be
significantly absent
that could affect the
decision of the
consumers towards
selecting the credit
card. Hence, the
reason they spend
money by using
credit card isn’t
related with
religion but depend
on benefits, risk
and quality given

Justin M. Credit CardThis research credit cards Data from the The study shows
Henegar, Behavior as a studied about National that whether who
Kristy Function of
the young Longitudinal exhibited
Archuleta, Impulsivity comparison of peoples Survey of impulsivity were
John Grable, and the Youth 1979 less likely to
Sonya Britt, Mother’s determinants cohort possess a credit
NaRita Socialization of credit card (NLSY79) and card while those
Anderson, Factors” possession the NLSY with a higher risk
and Anita Dale and usage was Child Survey tolerance were
(2013) Journal of presented were used to more likely to carry
Financial using a test the a credit card and it
Counseling nationally research also indicated that
and Planning representative hypotheses. those who were
24, 2 2013 sample. And impulsive were
this paper predicted to carry a
moves beyond credit card balance,
simply confirming our
describing hypotheses. Every
differences one-point increase
between credit in impulsivity was
users and non- associated with an
users and approximate
convenience 10% increase in the
versus balance likelihood of
revolvers. carrying a balance.
The analysis also
suggested that as a
mother’s time
preference
 increased (i.e.,
became more
patient) the more
likely the child was
to carry a balance
on his or her credit
card.
KaviyarasuEla Usage of This research Consumption Questionnaire The findings of the
ngkovan Credit Cards intended to s research is that
(2012) Beyond Limit : explore the Credit cards Young generations
A Case Study factors that Young ones around 30’s who
of Younger contributed to hold numbers of
Generations the credit card and
in Malaysia consumption personal loans are
of younger an example of
International generation today’s Malaysia.
Journal of due to credit Many people
Academic card debts. claims that the
Research in socio economy
Accounting, status of someone
Finance and is reflected by the
Management number of credit
Sciences 2, 4 cards they own.
(2012) ISSN: Without realizing
the consequences
2225-8329
of the usage of
credit card beyond
their limit, more and
younger peoples
aged around 30’s
were declared
bankrupt due to
credit card debts.
The findings of the
research provide
useful outcomes to
younger generation
as well as public in
order to increase
their awareness
regarding the
consumption issue
that could be seen
as a “new disease”.
Ringgold P. Credit Card This study Cardholders The data Results showed
Atienza (2014) Usage aimed to were that the type of
Pattern in examine the commodities analyzed commodities
Ozamiz City, credit card debt using the purchased with
Philippines usage pattern independent credit card is
in Ozamiz City financial t-test and influenced by age,
Journal of and how it is Pearson’s gender, marital
Multidisciplina influenced by income correlation status, educational
ry Studies 3, the users’ coefficient attainment and
No. 1, Aug socioeconomic income level but
2014 status and not with the number
attitude of dependents and
towards debt. the type of
Specifically, workplace
this study organization. The
determined the credit card
socioeconomic ownership is
characteristics influenced by age,
of cardholders marital status,
such as age, educational
gender, marital attainment and
status, number workplace
of dependents, organization but not
educational the gender, number
attainment, of dependents and
type of income level.
workplace, Findings also
income and showed that
how these cardholders with
variables the positive attitude
influenced the towards credit
type of cards were less
commodities cautious of their
paid through credit card
credit cards activities; thus, they
and the were more
number of susceptible to
credit card riskier activities
owned. It also than those
examined the cardholders with
relationship the negative
between the attitude towards
number of debt. Overall
credit cards results showed that
owned and the credit card
attitude usage pattern
towards credit varies among
cards different context.
Results of this
study can help
issuing banks for
more effective
regulation on credit
and collection, as
well as
organizations that
promote financial
education for
 consumer
protection.
Jamie Richter Attitudes of Researchers credit card The research The college
and Aimee D. College have studied use design was students in this
Prawitz (2013) Students the use of quasi- study who had
toward Credit credit cards by financial credit card debt
experimental,
Cards: A college education carried heavy debt
using a test
Comparison students for and control burdens overall.
of Credit Card over a decade, college Students who
students group. A
User Types and have carried credit card
survey
examined the debt reported
Journal of profiles of such questionnaire negative
Family & students. was also psychological
Consumer Studies have used. burdens as well,
Sciences, been including worry and
94(1), 71-77 conducted to loss of sleep
determine because of their
differences in financial situation.
the spending Students who
habits of this carried a monthly
population, to balance on their
examine their credit cards were
personality apprehensive about
factors using credit cards,
attitudes about and did not view
money them as useful
financial financial tools. An
knowledge, unexpected finding
factors that of the study was
influence their that, following the
levels of credit- delivery of financial
card debt, and education, students
attitudes about in both groups
credit and reported a desire to
credit cards). acquire even more
What has not credit cards. Since
yet been the same was true
determined is for both groups,
whether this finding could
financial not be attributed to
education the financial
about credit education session.
and credit One explanation for
cards is useful the finding is that,
in changing between the time of
attitudes the first data
toward credit collection in early
cards, and October 2008 and
whether such the second in late
attitudes are November 2008,
 different for the economy
those who suffered a
carry a credit diminishing of
card balance global credit, major
and those who stock market
pay their bills losses, and an
in full each enormous number
month. The of job losses. This
current study in turn spawned a
was designed global recession
to examine predicted by former
these U.S. Federal
concepts. Reserve Chairman
Based on the Alan Greenspan to
review of past be the longest and
studies of deepest since the
college 1930s (Worst
students’ credit recession since
card attitudes 1930s, 2009). The
and behaviors. students in this
study, like many
other Americans,
may have
experienced loss of
employment for
both themselves
and family
members;
additional access to
credit may have
seemed like the
only viable short-
term solution for
meeting the
semester’s
expenses.
Keith Wilcox, Leave Home This research credit cards, Experimental This study
Lauren G. Without It? examines how and field demonstrate that
Block, and Eric The Effects of credit card self-control studies outstanding credit
M. Eisenstein Credit Card debt affects spending card debt increases
(2011) Debt and consumer spending for
Available spending consumers with
Credit on high self-control.
Spending They also show
that this effect can
Journal of be eliminated by
Marketing increasing the
Research, available credit on
Special Issue the credit card.
2011 Thus, when the
available credit is
 low, consumers
with greater self-
control increase
spending, but when
the available credit
is high, they reduce
spending. The
results extend the
literature on goal
violation and self-
control and offer
insights into
consumer decision
making and
consumption
patterns under
conditions of debt.
Jill M. Norvilitis Attitudes The present consumer Questionnaire The present study
and Wesley toward Credit study sought to attitudes which sought to examine
Mendes-Da- Card and clarify attitudes composed of the utility of a
Finances toward money cross cultural
Silva (2013) total of 1257 theory of planned
among and debt differences college behavior in
College among students predicting credit
Students in Brazilian college card
Brazil and the college students debt to income
United States students credit cards ratios and student
and to loans and, a
and finances
Journal of compare these consequence of
Business attitudes with behavior, perceived
Theory and American financial well-being.
Practice, 1, . students, who It is interesting that
1,. 132-151, have a much different pieces of
2013 longer history the model appear
of credit card useful in predicting
use. Although different aspects of
little work has financial health. In
been the United States,
conducted to both attitudes
date examining toward money and
student debt social comparison
and attitudes predicted
toward debt well-being,
in Brazil, whereas in Brazil,
several only attitudes
differences predicted well-
were being. Prior work
anticipated has established
between the that
American and social comparison
Brazilian is linked with
samples. A satisfaction with
 recent income and
study success (McBride,
comparing 2010), debt among
American adults in Great
students with Britain (Lea,
another Webley, & Walker,
emerging 1995), and financial
market, China, well-being among
found that American
Chinese college students
students (Norvilitis& Mao,
were much 2012). Although the
more positive present study
about credit replicates this
cards than finding in predicting
American well-being among
students, but American college
reported lower students, social
levels of comparison does
financial self- not predict financial
confidence and well-being or debt
well-being among Brazilian
(Norvilitis& college students.
Mao, 2012). It Further, in both
is unclear samples, although
whether similar attitudes and social
attitudes would comparison were
be present in related to
other emerging perceptions of well-
markets where being, perceived
college behavioral control
students have was not.
only recently
gained access
to credit cards.
Chan Ricky “Demographic The study was Active and Personal Active card
(1997) and attitudinal to examine the Inactive credit Interview holders” in this
differences Demographic card holders study were
between and attitudinal operationalized as
active differences those whose
and inactive between monthly card usage
credit “inactive” and Demographic rate was over ten
cardholders– “active bank factors times, where as
the case of credit “inactive card
Hong Kong,” cardholders in holders” were those
Hong Kong. whose monthly
International The groups of card usage rate
Journal of card holders was below ten
Bank have been times.
Marketing 06/ classified As far as,
1997; according demography is
 15(4):117- to their concerned, income
125. differences in was found to be the
usage rates. single most
important variable
influencing the card
usage rate.
Specifically inactive
card holders were
found
to earn less than
their active
counterparts Paper
also examine, to
induce less
resourceful card
holders to increase
their card usage
rate, card issuers
are advised to
strengthen their co-
operation with
various retailers so
as to turn their
cards into the most
preferred mode of
payment.
SitiRahayuHus “Credit Card This study Credit cards Using a The findings of this
sin, Salina Holders in aims to explore convenient study revealed that
Kassim and Malaysia: the profile of credit card sampling there are significant
Nuraien Jamal Customer credit card usage method, a differences in credit
(2013) Characteristic holders in survey was card usage among
s and Credit Malaysia, customer conducted on credit card holders
Card Usage” covering data characteristic 350 of different
on customer s credit card personal
Int. Journal of demographic holders background.
Economics and socio- customer However, simple t-
and economic profile tests showed there
Management background is no significant
7(1): 108 – and its difference in credit
122 (2013) relation with card usage among
ISSN 1823 - credit card users of different
836X usage. In gender. This study
achieving has significance in
these terms of providing
objectives, the useful information
study embarks for developing
on customer profile
the following and revising credit
research card promotional
questions: (i) strategies.Credit
What are the card is used in
 characteristics different purchase
of current situations. Credit
credit card holders
card holders in seemed to use
Malaysia? (ii) credit card for
What are the purchases of basic
usage patterns needs such as fuel/
of Malaysian petrol, clothing and
credit card health services. As
holders? (iii) for retail purchases,
Are there any users seemed to
significant use their credit
differences in cards mostly for
customer accommodation/hot
characteristics el, dining and
and groceries shopping.
credit card The
usage pattern findings of the this
among study concurs well
different with the findings of
groups of Ahmed (2010)
credit card which
users? essentially
document
significant
relationship
between customer
profile and credit
card usage level
among credit card
holders in
Malaysia. Similarly,
the findings of this
study are also
consistent with
those of Ganet al.
(2008) for the case
of credit
card users in
Singapore.
Mathur and “Use of This study income Used a large This study finds
George credit-cards wants to national that older adults
(1994), by older shows employment sample of use
American” the usage respondents credit cards as
behavior retirement from different frequently as
Journal of pattern of older status age groups younger adults
Services people with when
Marketing, 8 credit card shopping circumstances and
Iss: 1,.27 - 36 spending habits opportunities for
consumption in
both groups are
similar. Contrary to
it, the commonly
held belief that
older people do not
use credit cards,
the data suggests
the need for
practitioners to stop
thinking about
consumer targets in
terms of age and
focus more on
circumstances that
determine one’s
likelihood to use
credit cards.
Factors such as
income,
employment,
retirement status,
shopping habits
should be
considered. While
credit card usage
may
overall decline with
age, certain
segment of mature
consumers
continue making
use of
credit cards
throughout the life.
The data in the
present study
suggests
alternative
criteria like income
and employment
status, for
appealing to
mature Americans.
Targeting older
consumers on the
basis of age might
not only alienate
them but is also
likely to reach
fewer prospective
customers
Park and “Fashion The study was Fashion Questionnaire It was found credit
Burns (2005) orientation to identify the oriented card usage to be
credit card direct impact of the most influential
use, and fashion-related Credit card factor followed by
compulsive factors on expenditure on
Compulsive
buying.” compulsive fashion goods.
buying and the buying Research shows
Journal of indirect impact Direct impact that fashion
Consumer of fashion- orientated
Marketing, 22 related factors Indirect consumers are
Iss: 3,.135 - on compulsive Impact heavy credit card
141 buying through users. Consumers
credit card who tend to have
use. fashion
leadership and
know the
importance of being
well dressed might
use their credit card
more while those
who have anti–
fashion attitude are
least likely to use
their credit cards.
The authors
observe that the
credit card is the
most significant
factor in
encouraging
compulsive buying
and suggest that
since other
antecedents of
such behavior are
hard to
pin down,
regulatory action
should focus on the
control of credit.
Influential This paper College Interviews Being in credit card
Kristi Leclerc Factors explores how students and survey debt is common for
(2012) Contributing access to many college
to College credit, Spending students, but
Student familiarity with habits exploring the
Spending debt and specific factors that
Habits and financial Credit card contribute may help
Credit Card education, prevent future
Debt socialization generations of
agents and students from
Academic social participating in
 Journal identities, unhealthy spending
;Spring2012, academic habits and
p149 performance, accumulating credit
and financial card debt. After a
aid and family close comparison
income of eleven studies, I
influence was able to
college student conclude that easy
spending access to credit
habits and cards makes
credit card students
debt. susceptible to
accumulating debt.
Students who
perform poorly
academically, are
female, minorities,
and who are older
tend to be more
likely to be in debt
than other
students. Family
income and the
amount of financial
aid a student
receives also
affects their
financial situation,
as does the
student’s own level
of financial
education, and
financial
socialization from
parents. Although
future research is
needed on this
topic, it is important
to note that
students’ social
environment has an
effect on their
financial health.
Shafinar “Determinants The present Banking Survey The study finds that
Ismail, of Attitude study explores product knowledge, media
and Hanudin towards the factors awareness,
Amin (2014) Credit Card influencing the credit card perceptions and
Usage” attitude of family influence are
credit
bank instrumental in
European customers in financing; determining
Journal of the context of consumer attitudes
 Business and the Malaysian personal toward credit card
Management) banking finance; usage. In more
ISSN 2222- system. The detail, perceptions
2839 (Online) study are ranked highest,
.6,.32, 2014 examines the followed by family
effects of influence and
knowledge, knowledge.
media Identifying such
awareness, factors helps to
perceptions, provide better
family information to direct
influence and future planning of
religious credit card
factors on services.
attitudes Importantly, this
towards credit study provides
card usage. valuable insight for
bank managers to
effectively oversee
credit card
services.
NurShahirahA Urban the objective of Household A survey will The study
zman and Household this research is debt, be conducted proposed that
Aminah Shari Credit Carddiscuss on among 300 factors such as
(2015) Debt related attitude, psychological
working
Behaviour in literature households factors ,economic
economic
East reviews and factors and socio-
Malaysia: A follows by the factors demographic
Conceptual development socio- factors as
Framework of conceptual demographic controlling factor
framework that may determine
factors
PROSIDING determine attitudes toward
PERKEM 10, urban credit card debt
(2015) 519 – household among urban
528 ISSN: credit card household. Thus
2231-962X debt by this study propose
integrating conceptual
psychological framework as a
factors, bank’s guideline to carry
policy factors out this study to
and socio- further level.
demographic These factors
factors important due to
economic factors
alone will not
enough to explain
household
indebtedness issue
and this had been
confirm by previous
literature. If indeed
 other than
economic factors
such as limitation in
income and/or
increasing in cost
of living that
contribute to
household debt,
thus the
government
initiative by giving
subsidy will be
ineffective. Due to
this reason,
psychological
factors should be
included to
investigate this
issue to tackle
down what are the
dominant factor
that induce
household to use
credit card.

Variable Matrix

Conceptual Tag /
Lexical Definition Operational Definition
Variable
Socioeconomic characteristics of
a population expressed statistically,
such as
age, sex, education level, income level,
Demographic Factor
marital status, occupation,
religion, birth rate, death
rate, average size of a family, average
age at marriage
 Kotler (2000) stated that It is defined as the act of disbursing
spending behavior money in response to an action,
studies "how individuals, environment, or person in the
groups and organizations satisfaction of needs and wants.
select, buy, use and
dispose of goods,
Spending Behavior services, ideas or
experiences to satisfy
their needs and desires."

Standard-size plastic token, with

a magnetic stripe that holds a machine
readable code. Credit cards are a
convenient substitute for cash or
Credit Card
check, and an
essential component of electronic
commerce and internet commerce.

It refer to thoughts, feelings and other

cognitive characteristics that affect the
attitude, behavior and functions of the
Psychological Factor human mind. These factors can
influence how a person thinks and later
affect his decisions and relations in his
daily life
Is the study of individuals, groups, or
organizations and the processes they
use to select, secure, use, and dispose
of products, services, experiences, or
Consumer behavior
ideas to satisfy needs and the impacts
that these processes have on the
consumer and society.
A person who possess or holds credit
Credit Card holders card.

It is an amount where he only spend

Average spending on what it being budget and it must not
go beyond the limit.
Rate where it measures the frequency
Credit card usage rate
of the credit card user
Social and economic factors that
Socio-economic factors
characterize the individual or group
within the social structure
According to Kellett and It is characterized by an obsession
Bolton (2009, p. 83), with shopping and buying behavior that
Compulsive buying
compulsive buying "is causes adverse consequences
experienced as an
 irresistible–uncontrollable
urge, resulting in
excessive, expensive and
time-consuming retail
activity [that is] typically
prompted by negative
affectivity" and results in
"gross social, personal
and/or financial
difficulties"
It is the act of spending more
Overspending money than you have or more than
was planned or agreed
Are a composite of a consumer's (1)
beliefs about, (2) feelings about, (3)
Consumer Attitude and behavioral intentions toward some
object--within the context of marketing,
usually a brand or retail store.
A reasonably interchangeable good or
material, bought and sold freely as an
article of commerce. Commodities
Commodities
include agricultural products, fuels, and
metals and are traded in bulk on a
commodity exchange or spot market.
the act of consuming
something.(economics) the utilization
Consumption
of economic goods to satisfy needs or
in manufacturing
The ability to control oneself, in
particular one's emotions and desires
Self-control or the expression of them in one's
behavior, especially in difficult
situations.
According to Ricky Chan
(1997) active card
holders” were
Active credit card holders operationalized and
defined as those whose
monthly card usage rate
was over ten times
According to Ricky Chan
Inactive credit card (1997) “inactive card
holders holders” were those
whose monthly card
usage rate was below ten
times
It is the way you are used to paying
money for things, the things you pay
Spending habits
money for, and how much you are
used to paying, all of which is very
 hard to change.
Money that an individual or business
receives in exchange for providing a
Income
good or service or through investing
capital
 Data Collection Form
Questionnaire
Dear Ma’am/Sir:
Greetings of Peace!
We the researchers of University of Saint Louis, Tuguegarao taking up Bachelor of
Science in Business Administration Major in Financial Management and are presently
conducting a research entitled “Spending Behavior of Credit Cardholder”. In connecting to this,
may we humbly seek your ample time to answer the following questions with utmost honesty.
Rest assured that all information will be used for the purpose of the study and will be kept with
confidentiality.
Thank you for your time and consideration!
The researcher.
NAME: (optional) _____________________________
Occupation: _________________________________
Sex: Male Civil Status: Single Annulled
Female Married Widow(er)

Age: 18 – 25 Income Level: 10,000 – 20,000

26 – 35 21,000 – 30,000
36 – 45 31,000 – 40,000
45 and above 41,000 and above
Number of Children:
1 2 3 4 5 6 or more
How frequent do you useyour credit card?
Daily Monthly Semi-annually
Weekly Quarterly Annually
How much is your annual expense on credit card?
30, 000 – 40, 000 41,000 – 55,000
56,000 – 70,000 75, 000 and above
How much is your credit card limit?
5, 000 – 10, 000 11,000 – 15,000
16,000 – 20,000 21,000 and above
Place a check mark in the following statements using:

5 - Strongly Agree
4 - Agree
3 - Neutral
2 - Disagree
1 - Strongly Disagree

Statements 5 4 3 2 1

Credit cards lead people to overspending.

I often act impulsive when I do my purchases

with credit cards.

Sometimes I lose my control when I do

purchases with credit cards.

Spending money makes me feel better.

I never go beyond my credit card(s)

limit(s).

Using credit cards drive me to spend more.

Credit card usage gives me the freedom of

excess spending.

Paying with credit card is always more

advantageous than paying with cash

I always ensure that I will bring along my credit

card(s) whenever I go for shopping;

When I have my credit card with me, I do feel it

is easier to decide on purchasing even if I do
not think that there is a necessity for it earlier.