Consumer Research Stats Case Analysis

Credit cards have become increasingly popular world-wide, making it easier to buy now and pay later but are they actually helping or hindering someone’s credit? “Maxed Out” by James D. Scurlock demonstrates how credit cards can hurt someone’s credit, while “Why Won’t Anyone give Me a Credit Card” by Kevin O’Donnell demonstrates how someone may have financial stability to pay off a credit card, but still be consistently denied one by the credit card companies. Owning credit cards is not the problem; the problem is being irresponsible with it.

21. Which is true about the practice of marketing credit cards to teenagers? a. Teens are the number one target of credit card companies in America today. b. Brand loyalty to your first card is incredible, so credit card companies work hard to win you over first. c. Colleges are losing more students to credit card debt problems than to academic failure. d. All of the above 22. Which is not true about making purchases with credit cards? a. You spend 12-18% less when using a credit card. b. You spend 12-18% more when using a credit card. c. You are less likely to experience neurological “pain” when purchasing with a credit card. d. None of the above 23. Why do people think that the home equity loan is a good idea? a. There is a good tax refund. b. It serves as a substitute for an emergency fund. c. It’s a way to consolidate debt. d. All of the above 24. Kevin has the following debts: Home Equity Loan, $24,000; Visa, $1,200; Student Loan, $5,000; Car, $12,000. How should he prioritize his debt snowball? a. Home Equity Loan, Visa, Student Loan, Car b. Visa, Car, Student Loan, Home Equity Loan c. Visa, Student Loan, Car, Home Equity Loan d. Cannot prioritize the debt snowball without knowing the interest rates on each debt

There is a linear positive relationship between Income and Credit Balance variables. Where income increases, credit balance also increases.

AJ DAVIS is a department store chain, which has many credit customers. A sample of 50 credit customers is selected with data collected on location, income, credit balance, number of people and years lived in the house

- Credit score simulator can help the average consumer understand the status of their credit report and scores at any particular point

Not only for those seeking to retire, the business motivated economy has transfigured how one must live in order to live comfortably. Building credit through credit cards is often perceived to be the only way in order for a buyer to appear credible. Yet in the quest for the optimal credit score people enter into debt. Considering and evaluating the risks and benefits to credit cards may contribute to opinions towards those flimsy pieces of plastic.

In an attempt to improve the model, we attempt to do a multiple regression model predicting income based on credit balance, years, and size.

Evaluation: This article, posted on April 1, 2016, was originally published on TheConversation.com. Throughout the article, the author cites sources that come from 2012-2017, with the majority of them coming from 2015-2016. Moreover, these cited websites are credible, well-known, and have information that can be corroborated with other sources. Some of these sites included The Wall Street Journal, the New York Times, and a report from the Federal Reserve. Moving on, the author, Mechele Dickerson, is an expert on this topic. Dickerson received both her B.A. and J.D. from Harvard University and currently works as a professor of law at the University of Texas at Austin. Here, she teaches classes on consumer law, debt and spending to law and undergraduate students. In her current research, she explores causes and consequences of consumer debt and how the culture

In the article “What Drives Credit Card Debt?” Amy Traub correlates credit card debt to several different variables. One of the major variables referenced was the absence of health care. In 2012, a national survey of 1,997 working age adults was conducted and the outcome was extremely surprising. According to this survey if a family does not have health care they are 20 percent more likely to be carrying credit card debt. (Traub) Another variable tested was if the household was ever unemployed. Studies show that even if the person was unemployed for a short period of time they are 14% more likely to carry credit card debt. However, if you are lucky to have assets to draw from you are less lucky to have credit card debt. Many different factors

Analyzing the scatterplot credit balance vs size, it seems like size (x) will be a good predictor of credit balance (y). The line has a positive slope, and shows that when x increase per 1 unit, y will change by the slope.

In today’s modern world, I can say without hesitation that we live in a disposable society where throwing away items isn’t a tough commitment, rather we spend money aimlessly on extravagant items only to add to our wishlists after the last purchase was made. As individuals use their credit card to make purchases locally and abroad, many appear to overlook the fact that daily periodic interest charges are added to their credit card balances. Consequently, John Verdant brings the subject of purchasing into play as he describes the regular routine of the Able family. According to Verdant’s statement, “When they decide on a purchase, the Ables pay the local merchants in cash unless they choose to a credit card to get a warranty extension or to buy something locally. Paying by cash or check saves the merchant the 1.5% to 4% percentage fee they pay to the credit card company on the purchase plus the per transaction fee they have to pay to the bank.” (Verdant, pg. 153). Although card transactions can be made in the blink of an eye, the biggest disadvantage of this method of payment is the amount of debt held by the

On a periodic basis, the Federal reserve releases key statistics related to credit card debt in America. With almost 2,000,000,000 credit cards in use while in the hands of almost 200,000,000 individual credit card holders, there is no denying the popularity of these little pieces of plastic. Through May of 2015, Americans were responsible for $901 billion in credit

This analysis would benefit from the addition of more variables. The addition of variables would allow a more accurate study. These variables should also being broken down into several data elements. Some suggestions for variables for future analysis include the discount for the bill purchased and a variety of account demographics. These demographics might include credit status, geographic location, bankruptcy/foreclosure, net worth or net income. This study should also be for a longer time period. The additional variables would identify the greatest possible accounts with the shortest time for collection.

This study examined how parents’ teaching and modeling of financial concepts affects college student credit card debt (n = 173). Parental hands-on mentoring of financial skills was most strongly related to lower levels of credit card debt and this relationship was partially mediated by it leading to greater financial delay of gratification and less impulsive credit card purchasing which in turn were related to less problematic credit card use. Having parents who struggled with debt was not significantly related to debt although having parents who avoided talking about finances predicted problematic credit card use. Students’ beliefs that their parents would bail them out of debt were related to lower levels of debt. Financial knowledge and

“The average American owns 3.5 credit cards and $15,799 in credit card debt… totaling consumer debt of $2.43 trillion in the USA alone.” (Beckner). Debt forces many people into depression and worrying lives. People struggle to discover happiness through financing goods, but struggle even more to find a way out of debt. Through consumerism, people lose their finances in department stores, car dealerships, and much more. Most of the possessions people buy with credit cards become impractical within a few months. The void they search for is never really filled. Consumerism is just a way to get the economy going, without thinking of a person’s individual finance