Questions tagged [consumer-credit]

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what portion of US consumer spending that is debt-financed (looking for data source)

In a piece from Business Insider, we read: US households today have a savings rate of just 3.7% — way below the historical levels of 9%. Meanwhile, consumer spending exploded by \$208 billion in the ...
discipulus's user avatar
1 vote
0 answers
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Why do I keep hearing that Americans are running down their pandemic savings but the data doesn't show that?

I keep hearing on the news etc. that Americans are running down their savings, even from well known figures like the head of Blackrock etc. Granted I have not been looking at economists specifically. ...
Adam Thompson's user avatar
1 vote
2 answers
63 views

Debt to income ratio

I live in Canada, and here the debt-to-income ratio is 1.83. I just want to be sure: is it really the after-tax monthly income divided by the total debt monthly payment? Because I don't understand how ...
Laurent Tremblay Mompart's user avatar
0 votes
1 answer
38 views

Is there any academic paper documented about firms' trade credit collection approach?

I am looking for some papers that documented some trade credit collection approaches, especially when the market becomes more competitive. In another word, what should the managers do to improve the ...
Phil Nguyen's user avatar
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1 vote
1 answer
524 views

Why Banks give more discounts/offers on Credit Card as compared to Debit Cards?

Whether a credit or debit card is used to make a payment at a merchant, there will be outflow of money from the bank. What extra benefit do the bank get from promoting credit more than debit card? Is ...
Dayne's user avatar
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7 votes
3 answers
579 views

What would be the economic effect of widespread instances of individuals paying off consumer debt?

In light of the economic impact of the recent shutdowns in response to COVID-19, the Australian Government is considering bringing forward planned tax cuts, that were do to be implemented gradually ...
Brett's user avatar
  • 173
1 vote
1 answer
79 views

Why charge higher interest rates to poorer customers?

Consumer loans/credit charge different rates depending on the individual's risk. In particular, it charges more to poorer individuals. Whilst this seems to make sense from a risk perspective, there ...
Danny_R's user avatar
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1 vote
1 answer
186 views

Utility Function in Consumer Credit

I have been studying the area of unsecured consumer credit (consumer loans and credit cards) and credit scoring. My question is: can we have a utility function (either a lender's or borrower's utility)...
Owadgi Akinyi's user avatar
0 votes
1 answer
403 views

Do credit cards create more printed money

As far as I know, when people take a loan from a bank, most of the loan value is electronically printed money, i.e. money that did not exist before. Is it also what happens with consumer credit cards? ...
rapt's user avatar
  • 171
5 votes
1 answer
1k views

Why did the stock of consumer loans held by commercial banks jump in March 2010?

The graph below refers to "Consumer Loans: Credit Cards and Other Revolving Plans, All Commercial Banks", from here. What happened in March 2010? The data come from the balance sheets of commercial ...
Adrian's user avatar
  • 163
2 votes
2 answers
39 views

What's the benefit the bank gets on offering me to pay my water/electricity/gas with credit card?

It says "get extra 40 days to pay your bills" with no interest! Is it just based on the statistics that people will eventually forget paying and then charge interests from those 40 days, or are there ...
ClayKaboom's user avatar
1 vote
1 answer
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Is the lack of information on customer behaviour good for banks?

Discussing chapter 18 on Microeconomic Theory Basic Principles and Extensions - Nicholson and Snyder book - regarding Asymmetric information a student raise an interesting point of view regarding the ...
dekio's user avatar
  • 133
5 votes
2 answers
215 views

Learning about Debt and Credit

I am very interested in learning about debt and credit - not personal debt and credit - but debt and credit of countries and the like. I have searched everywhere but it's difficult to find books that ...
Jeel Shah's user avatar
  • 103
12 votes
1 answer
874 views

What are estimates of the elasticity of demand for credit with respect to interest rates?

When interest rates go up one percent (not one percentage point), what happens to demand for credit? I've only been able to find two papers in this area: Gross and Souleles (2001) study credit cards ...
BKay's user avatar
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