Causes and consequences of debt in credit card: a multifactor analysis

ABSTRACTThis study aims to evaluate the causes and consequences of debt in the credit card through behavioral factors. A research with 1,831 credit card clients in Rio Grande do Sul, Minas Gerais and Maranhão has been made by applying questionnaires. Initially, it has been observed that the respondents maintain a low level of indebtedness in credit cards. The results obtained by the structural equation modeling show as indebtedness determinants the constructs materialism, compulsive shopping, behavior to use credit card and financial literacy, and, as consequences, the low level of financial well-being and negative emotions.