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Age

This study
considers four demographic factors such as age, income level, occupation,

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and
marital status which are posited to influence credit card holders’ spending

behavior.

A number
of interesting findings have been documented concerning age of credit

card
holders. Devlin et al. (2007) found that the older the respondents, the more
likely

they are
to possess one or more credit cards. However, college students and young

credit
card holders, albeit possessing fewer credit cards, have been increasingly

identified
as contributors to credit card debts (Kara et al., 1994; Norvilitis and Maria,

2002)
compared to the more senior card holders. The reason for this could be
explained

by the
perception of young credit card holders that they will not face the burden of

financial
obligations because they believe that they still have a long future ahead

to settle
the debts (Roberts and Sepulveda, 1999). Many young card holders assume

that any
financial problem faced is temporary and it will be easily repaid due to their

young age.

This perception would have shaped the young credit card holders’ spending

behavior
compared to the more senior card holders who are likely to be financially

sound, yet
conservative in their spending. This may explain why out of the 8 percent

of
bankruptcies in Malaysia due to credit card overuse, an average of 49 percent

consists
of those who are below the age of 30 (The Star, 2009). It is therefore
interesting

to
determine whether there is any significant correlation between age and credit

card
holders’ spending behavior among Malaysians. The following hypothesis is

thus
formulated:

Younger
people are at risk for high levels of credit card debt and the resulting
economic hardships because they rank higher on scales of compulsive buying
(Kessler, 1982; O?Guinn and Faber, 1989; Drentea, 2000). They are establishing
an adult identity that, in the U.S., is likely to include the acquisition of
consumer goods (Dittmar, 2005). Acquiring the consumer

goods that
symbolize adulthood in American culture may not only lead to making

more
purchases, but, also to heightened credit card use due to the fact that they

have not
yet reached their full earning potential. Further, older adults use credit

less, have
less anxiety over debt, and have lower overall debt to income ratios

(Kessler,
1982; Drentea, 2004 / 2005).

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