Credit Card Debt and Compulsive Buying

Abstract

Financial stability is very important especially for college students who are just starting out on their own. Credit card use and compulsive buying could have a very strong effect on college students’ financial stability. In order to further understand credit card use and compulsive buying, this study correlates them with money attitudes and financial knowledge. Previous research has found correlations between financial knowledge and credit card use as well as compulsive buying. Previous research has also showed correlations between money attitudes and both credit card use and compulsive buying. 96 participants were given four surveys which looked at money attitudes, financial knowledge, credit card use, and compulsive buying. Results showed that those with power-prestige money attitudes were more likely to have higher credit card use and compulsive spending. Results also showed that those with a higher financial knowledge were more likely to have lower credit card use and compulsive spending.