Credit Card Practices: Knowledge, Attitude and Debt Management

The trend of accumulation of large credit card debt, especially among young adults, has certainly become a nationwide concern in Malaysia. Consequently, many youngsters have been declared as bankrupt due to credit card indebtedness. Even though these youngsters were those with a lack of essential skills to handle credit cards, it seems that credit cards were easily accessible by them (college students in particular). Therefore, as previous studies have indicated, the ability of these youngsters to manage their finances efficiently is being questioned. The purpose of this study is to examine the factors contributing to postgraduate students’ practices on credit card usage. The objectives of this study are: 1) to determine whether the understanding or knowledge of credit card usage can be used to minimise the impacts of credit card debt; 2) to examine whether the perceptions or attitudes on credit cards can affect its usage; and 3) to study the relationship between credit card debt management and credit card practices. Survey questionnaires were distributed and completed by a convenience sample of 100 postgraduate students at Universiti Putra Malaysia. After applying a chi-square test analysis, the results indicated three factors; knowledge of credit card usage, perceptions or attitudes of credit card usage, and credit card debt management have contributed as key determinants of the credit card practices and financial decisions among post-graduate students. The findings can assist the government in identifying suitable measures to reduce irresponsible credit card practices, especially amongst youngsters. It also offers practical information for administrators and counsellors to address the challenges faced by students of higher learning institutions.