World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Australia’s Love-Hate Relationship with their Credit Cards

University of Sydney Study Exposes Australia’s Love-Hate Relationship with their Credit Cards

21 May 2012

A new University of Sydney study has revealed the full extent of Australia’s love-hate relationship with credit cards and those who use them.

While 56 percent of us feel sorry for people who get into credit card debt, more than half of us also believe that people in credit card debt have only themselves to blame.

The survey of 584 credit card users conducted by Associate Professor Paul Henry, Professor Ellen Garbarino and Dr Ranjit Voola at the University of Sydney Business School, which will be published in the Journal of Public Policy and Marketing, also found that while more than 80 percent of respondents agreed that credit card marketers should be much more tightly regulated, 52 percent thought that individual responsibility would work better than tighter regulations.

“Consumers like their credit cards, they are a necessity, but at the same time they are seen as something to be wary of,” says Professor Paul Henry, who believes the ambivalent relationship has important implications for both public policymakers and credit card marketers.

“The results indicate that we should be adhering to protective regulations more tightly, but there is also a role for public policy interventions that aim to improve individual responsibility.”

Improving people’s sense of financial control by, for example, making it easier for them to understand terms and conditions and information on their credit card statements, is an important step. By making individuals more financially responsible, people’s relationships with their credit cards would improve significantly.

“Financial responsibility is good for both credit card marketers and consumers. When people have negative experiences of credit card debt, they are more likely to distrust and blame the credit card provider.”

“So if you improve consumers’ financial literacy, you also take away the excuse that debt is the fault of unscrupulous marketers,” says Professor Henry. 

“If customers make better decisions about choosing and using a credit card, they will have less negative experiences of credit cards and the level of blame attributed to card marketers will decrease,” he says.

The study also found that while consumers are distrustful of credit card marketers, they are apathetic when it comes to tightening regulations.

The bulk of pressure for regulatory change doesn’t come from mainstream consumers, but is driven by advocacy groups and public policymakers.

However, according to Professor Henry, a more active and supportive public in this area would be in everybody’s best interest.

“If the public were more active in supporting and encouraging government policy for tighter regulations, there would be fewer negative experiences of credit card use, which would again be in the interest of credit card companies, public policy groups and consumers.”

ENDS

© Scoop Media

 
 
 
 
 
World Headlines

 

MSF: Ebola Crisis Update - 16th October 2014

16 October 2014 Cases Deaths Guinea 1,472 843 Liberia 4,249 2,458 Nigeria 20 8 Sierra Leone 3,252 1,183 Senegal 1 0 Total 8,994 4,492 WHO Figures - Data are based on official information reported by Ministries of Health. These numbers are subject to change ... More>>

ALSO:

Detroit: City-Backed Water Shut-Offs Contrary To Human Rights

20 October 2014 – The city of Detroit must restore access to water for its citizens who remain unable to pay their bills, two United Nations experts urged today, adding that a failure to do so would be a violation of the most basic human rights of those ... More>>

ALSO:

DR Congo: Head Of UN Mission Condemns Deadly Rebel Attacks

A MONUSCO APC is greeted by FARDC soldiers on their way back from the front line in the Beni region of the DRC where the UN is backing the FARDC in an operation against ADF militia. Photo: MONUSCO/Sylvain Liechti More>>

UNESCO Chief Denounces Killing Of Cambodian Journalist

17 October 2014 – The head of the United Nations agency tasked with defending press freedom today denounced the killing of a Cambodian reporter shot while investigating illegal logging in the eastern part of the country. More>>


UN Lauds Role Of Family Farmers In Ending Global Hunger

A farmer at work in a dragon fruit field in Viet Nam (July 2013). Photo: FAO/Hoang Dinh Nam | See more photos More>>


Funding Gap Looms Amid Efforts To Tackle Ebola & ISIS

Funding Gap Looms Amid Efforts to Tackle ‘Twin Plagues’ Ebola, ISIL, Warns UN Rights Chief More>>

ALSO:

  • The White House - Ebola: What You Need to Know

  • Egypt Sentences Another Al Jazeera Journalist

    In another disturbing move against freedom of speech and independent journalism in Egypt, one of Al Jazeera Arabic channel’s presenters, Ahmed Mansour, has been sentenced in absentia to fifteen years imprisonment by Cairo’s criminal court on the absurd ... More>>

    ISIL Advance On Iraqi Town Unleash New Flood Of Displacement

    Syrian Kurds from the town of Kobane seeking shelter in Iraq's Kurdistan region. Photo: UNHCR/D. Nahr More>>

    ALSO:

  • U.S. Department of State - U.S. Condemns ISIL Attacks in Iraq

  • Get More From Scoop

     
     
     
     
     
    World
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news