Abstract
Many of the previous studies in economic sociology have regarded credit cards as tools which cultivate consumerism and facilitate excessive spending or indebtedness. In light of those previous studies, two issues were examined: (1) the link between consumerist attitudes and credit card possession or usage; (2) the effect of credit card possession on consumer spending. Using the data from the survey on financial behaviors conducted in Japan, we verified the hypothesis that credit cards encourage hyperconsumption. A total of 1,823 subjects responded to the survey. Logistic regression and quantile regression analyses were used for the verification.
Our results showed that credit card possession and single payment were positively correlated with the “rational” consumer attitude which is cost-conscious, calculating and frugal. Meanwhile, credit card possession pushed up monthly household spending slightly. Therefore, these results suggested the possibility that while consumers are possessing and using credit cards with the intention to save money, credit cards make them spend a little more.
