Enter your name:

Credit card users are likely to spend up to twice as much on purchases when paying with MCQ #1budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative, according to a market researcher. Big spenders were also more inclined to use credit cards and MCQ #2budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative to save less than MCQ #3budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative consumers who used cash or cheque accounts, Hong Kong University of Science and Technology marketing department Professor Dilip Soman said.

In a survey of 275 supermarket shoppers, Professor Soman found that regular credit card users MCQ #4budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative to spend 100 per cent more on optional purchases such as grocery treats like biscuits, snacks or chocolate. He MCQ #5budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative 275 supermarket receipts and found buyers of treats spent an average of $18 on credit and $9 when paying by cash.

In a separate survey of 800 shoppers, he found that five to 10 per cent of credit card users had MCQ #6budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative and regularly wrote down expenses. The results come amid debate over credit card abuse in Hong Kong. ICBC (Asia) chief executive Chris Chan Chi-keung recently called for criminal action against people who went on credit spending MCQ #7budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative and then filed for bankruptcy.

Professor Soman said the nature of credit cards, where the cost was not very "visible" and MCQ #8budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative were delayed, meant most consumers did not remember buying items. Those who did, often underestimated the amount. He said that because of this, people who used credit cards were more likely to MCQ #9budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative an item and spend more than someone who paid by cash or cheque.

Those who used credit cards also MCQ #10budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative to save much less because they either became locked into a cycle of MCQ #11budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative or did not want to save. "People find it less 'painful' to make a collection of purchases in one MCQ #12budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative which is why credit cards are so popular," Professor Soman said.

However, consumers were less likely to use credit when purchasing luxury items such as expensive jewellery, cars or holidays. They were more likely to use credit for necessities.

"Smart consumers are the ones who pay back all their MCQ #13budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative promptly at the end of the month, and banks don't like these people because they don't make any money out of them," Professor Soman said. "At the other end there are people who borrow a lot and MCQ #14budgetsplastictransactiontendeddefaultoverspendingdebtsanalysedpaymentspurchasespreesconservative - something banks don't like either."