Abstract:

It has been realized that there is a remarkable decrease in the ratio of savings of gained income to save in many countries last years. The debt increase in household expenses accompanied to this decrease in savings. In addition to this, when considering the reasons of increase in debts, it has been noticed that credit cards hold an important place. Transformation of credit cards and ATMs to initial payment method in many countries has brought the most controversial problem on consumption on the agenda. This is the problem that credit cards are considered as one of the factors which contributes to becoming widespread of unsustainable consuming trend day by day. In this survey, the effect of income and credit card use on consumption is searched and the period between the first quarter of 1998 and the third quarter of 2009 (47 observation) has been used.

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