The Determinants of Outstanding Balances among Credit Card Revolvers

H. & DeVaney, S. A. (2001). The determinants of outstanding balances
among credit card revolvers. Financial Counseling and Planning,
12(1), 67-77.

The Determinants
Of Outstanding Balances Among Credit Card Revolvers


Sharon A. DeVaney

The purpose of the study
was to determine factors predicting the amount of outstanding credit card
balances among credit card revolvers. Data from the 1998 Survey of Consumer
Finances and a Heckman two-stage estimation were used for analysis. Factors
related to the likelihood of having an outstanding balance differed from
the factors affecting the amount of the outstanding credit card balance.
Education, income, real assets, credit card interest rate, number of credit
cards, the credit limit, a positive attitude to credit, and behind schedule
payments were positively related to the outstanding credit card balance. 

Key words: Credit cards,
Heckman model, Revolving credit card user, Survey of Consumer Finances

1.  Haejeong
Kim, Ph.D. candidate, Department of Consumer Sciences and Retailing, Purdue
University. E-mail:

Sharon A. DeVaney, Associate Professor, Department of Consumer Sciences
& Retailing, 216 Matthews Hall, Purdue University, West Lafayette,
IN 47907-1262. Phone: 765-494-8300. Fax: 

765-494-0869. E-mail: