The use of credit card becomes more and more prevalent among university students, who are the ones without any certificate of source of income. It is due to the marketing strategies of credit card companies.(Arano 2005) Merrill(2007) explained why students are targets of credit card company. ”College students represent an untapped market of people who may not yet be maxed out on their credit and are likely to develop brand loyalty to their first credit card company.”(Merrill,2007,p.8)
It generates great concern in the society that the usage of credit card and the related card debt of university students.
The aforementioned phenomenon is also prevalent among university students in Hong Kong. More and more undergraduates have credit cards and the situation of “Buy Now Save Later” is getting serious. There are only limited amount of research papers investigate the Credit card use and debt among Hong Kong undergraduates.
Therefore, this research aims to (i) examine the credit card usage and debt among Hong Kong university students, (ii) examine the perception towards debt of undergraduates in order to know whether the concept of “Buy Now Save Later” is applicable in Hong Kong.
There is substantial literature about credit card issues of undergraduates. Some researchers have studied the factors related to undergraduates’ credit card use. In his study of undergraduate students in Australia, Ha (2008) found seven demographic variables to explain students’ behaviour towards credit card use and in on-line and off-line marketplaces. Huang and Weagley (2007) examined the role of psychological factors in affecting students’ use of credit card.
Several researchers carried out surveys on credit card use and debt among undergraduate students. Arano (2005) compared the undergraduates’ credit use and of FHSU to the national and Midwest estimates. He found the results were positive. They were all lower for FHSU students than...