Credit Card Usage

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ABSTRACT
Year by year, the amount of debt incurred by undergraduate students due to credit card usage has been disturbingly escalating. This situation surely has set off an alarm, distressing the society mainly because students as proven to be true are unacquainted to face the long-term consequences of living with debt. This is becoming a concern in the society as students are unacquainted of the long-term consequences living in debt. In accordance with the said matter, the aim of this study is to examine the usage of credit card among Malaysian undergraduate students. A questionnaire was disseminated among 12 undergraduate students of Malaysian universities. The overall finding has discovered that most of the undergraduate students are not accruing huge amount of debt. Indeed, it has appeared that the students have been using their credit cards responsibly and wisely. Despite the result of what seems like a positive outcome, more research is ought to be conducted in order to test the relationship between consumer education and students’ practices in the event of credit card payment.

1. INTRODUCTION
2.1 Background of the study
In this era, credit card which is also famous for its other alias that is ‘plastic money’, is an essential mode of payment in today’s society. People own credit card for numerous reasons such as to attain credit facility, cash advance, easy payment, charge and prestige. It has become a way of life in the society nowadays that different types of credit card such as Master and Visa and category gold and platinum, symbolize the wealth status of a person in a society. Undoubtedly, the role of credit card is far beyond that. For instance, a credit card is easier and safer to be carried rather than a large amount of cash. If it is lost or stolen, the credit card company will provide a protection over the credit card usage. Many of today’s college or university students appreciate the convenience and relative safety of credit cards. Students can purchase the products and services anytime, although they do not have cash in their pocket. In addition, they find that credit cards are very helpful in emergencies and many parents feel more comfortable knowing their children have the ability to take care of any emergency quickly with a credit card. Credit card companies find university students are attractive to be solicited because their lifestyle offers many opportunities to use credit cards. Robb (2007) mentioned that “expansion of the credit card market to college students has led to credit cards becoming a way of life for today’s college students” (p. 2). Credit card companies have been cashing in on this rapidly growing segment by setting up booths on university campuses as well as creating alliances with colleges for the exclusive rights to advertise their credit cards (Silver-Greenberg, 2008; Souccar, 1999). Consequently, there has been a dramatic growth found in credit card usage among university students. 1.2 Statement of the Problem

Credit cards make students’ life easier and can be a huge asset or tool when used responsibly and carefully. Students’ credit cards can offer convenience, give an opportunity to build credit and to learn responsibility to live within their means. However, if students misuse or mismanage the credit cards, the drawback can result in severe financial consequences. Roberts and Tanner (2000) affirmed that college students who misuse credit cards irresponsibly often suffer financially and psychologically. The expediency of credit cards tends to influence university students to spend more beyond their necessities which lead to setting themselves up for a life of credit problems. This situation might wind up trapping them in a cycle of debt and later on the excessive credit card debt might be harming their chances for future employment. By having credit cards, students’ behaviors or attitudes in spending are different in comparison with using cash. Some students...
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