This paper attempts to assess whether the driving factor behind the rising credit card indebtedness of consumers in Turkey is financial illiteracy. Using the results of a nationwide survey, the authors conclude that even though credit card borrowing frequency and debt amount are affected by components of financial literacy, being credit-constrained has a very pronounced impact. An exploratory analysis finds that the probability of irrational credit card borrowing is increased by being credit-constrained but not affected by financial literacy. These findings suggest that credit card debt is at least as much a result of necessity as nescience.
![Credit Card Debt: Nescience or Necessity?](https://erf.org.eg/app/uploads/2015/12/Gulsun-Photo1-150x150.jpg)
Authors
G. Gulsun Akin
Bogazici University
![Credit Card Debt: Nescience or Necessity?](https://erf.org.eg/app/uploads/2015/12/1620055685_583_68150_nl_ahmetfarukaysan-150x150.png)
Research Fellows
Ahmet Faruk Aysan
Associate Dean for Research, Hamad Bin Khalifa...
![Credit Card Debt: Nescience or Necessity?](https://erf.org.eg/app/themes/website2020/resources/assets/images/placeholder.jpg)
Authors
Sezgim Dasdogen
Department of Economics, Bogazici University
![Credit Card Debt: Nescience or Necessity?](https://erf.org.eg/app/uploads/2015/12/levent_yildiran.jpg)
Authors
Levent Yildiran
Bogazici University