3433-vol. 6 issue 2-3.pmd - iarfc

More documents

Recommendations

Info

102 Journal of Personal Finance such as flexible interest rates, late fees, over the limit charges, and the possibility that a poor payment history on one card can trigger increased finance charges on others. The higher levels of confidence and lower levels of worry among older adults might make interventions difficult. The first step with this group is to raise awareness that mounting debt can become a problem with consequences that might prevent them from attaining other important goals. A second step is to help them understand the reasons behind their use of consumer credit. For some clients, health concerns and the need for expensive medications, health care, or insurance payments may be driving the use of credit. Others have real or perceived expectations for the care of their aging parents or their adult children and grandchildren. In some cases, poor communication or uncomfortable or even hostile interactions with a partner or family member about money and debt may stand in the way of developing effective strategies for reducing credit card debt. An analysis of these demands on income and interpersonal challenges may lead to identification of other resources or new strategies for reducing debt. A third step is to educate the client about the credit card system and “smart” consumer behaviors such as calling the credit card company to ask for a lower interest rate, reviewing the costs associated with late payments, selecting credit cards with the most favorable features, and analyzing the factors that result in a poor credit score. Once an older client realizes that paying for something using a credit card actually costs much more if the balance is not paid in full each month than paying by cash, he or she may be more motivated to reduce credit card spending. Understanding how aspects of the credit system impact their debt might mobilize older adults toward problem-focused coping. Once older adults understand the credit system and the “rules of the game” they may be more likely to want to take action and to be successful. They are more likely to view their debt as a manageable problem, their willingness to seek help in solving the problem may increase, and their existing high level of confidence can be a resource to help them succeed in getting out of debt. Acknowledgements The authors would like to thank Janice M. Prochaska, Ph.D. and Janet J. Johnson, Ph.D., of Pro-Change Behavior Systems, and Berta Leon and Robert L. Bassett, Research Assistants in the Department of Human Development & Family Studies, University of Rhode Island for their contributions to the larger research project and related publications. ©2008, IARFC All rights of reproduction in any form reserved.
Volume 6, Issue 2 & 3 103 References Aizcorbe, A. M., Kennickell, A. B., & Moore, K. B. (2003, January). Recent changes in U.S. family finances: Evidence from the 1998 and 2001 survey of consumer finances. Federal Reserve Bulletin, 89, 1-31. Bandura, A. (1997). Self-efficacy. Harvard Mental Health Letter, 13(9), 4-7. Block, S. (2005, August 30). Students who charge their education have a lot to learn. USA Today, p. B4. Breitbard, S., & Reynolds, C. (2003). Jump-starting financial literacy. Journal of Accountancy, 196(6), 56-60. Bristow, B. J. (1997). Promoting financial well-being: Running a successful MONEY 2000 campaign. Ithaca, NY: Cornell Cooperative Extension. Bucks, B.K., Kennickell, A.B. & Moore, K.B. (2006). Recent changes in U.S. family finances: Evidence from the 2001 and 2004 survey of consumer finances. Federal Reserve Bulletin, 92, A1-A38. Business Wire, (2004). 28% Of Americans Say Getting out of Debt is Their Top New Year’s Resolution, Topping Losing Weight for the First Time, According to the Cambridge Consumer Credit Index. January 8. Retrieved from the Internet on September 28, 2007 at http://findarticles.com/ p/articles/mi_m0EIN/is_2004_Jan_8/ai_111960111. Caplan, L.J. & Schooler, C. (2007). Socioeconomic status and financial coping strategies: The mediating role of perceived control. Social Psychology Quarterly, 70(1), 43-58. Chien, Y-W., & DeVaney, S. A. (2001). The effects of credit card attitude and socioeconomic factors on credit card and installment debt. The Journal of Consumer Affairs, 35(1), 162-179. Devaney, S. A., & Lytton, R. (1995). Household insolvency: A review of household debt repayment, delinquency, and bankruptcy. Financial Services Review, 4(2), 137-156. Drentea, P. (2000). Age, debt, anxiety. Journal of Health and Social Behavior, 41(4), 437-450. Drentea, P., & Lavrakas P. J. (2000). Over the limit: The association among health, race and debt. Social Science and Medicine, 50(4), 517-529. Durkin, T. A. (2000, September). Credit cards: Use and consumer attitudes, 1970-2000. Federal Reserve Bulletin, 623-634. Elder, G.H. Jr. (1996). Human lives in changing societies: Life course and developmental insights. In R.B. Cairns, G.H. Elder, Jr. & E. J. Costello (Eds.). Developmental Science. (pp. 31-62). Cambridge, UK: Cambridge University Press. Research & Theory
Page 1 and 2:
Journal of Personal Finance Tools,
Page 3 and 4:
Volume 6, Issue 2 & 3 3 RESEARCH &
Page 5 and 6:
Volume 6, Issue 2 & 3 5 A Bull Call
Page 7 and 8:
Volume 6, Issue 2 & 3 7 submissions
Page 9 and 10:
Volume 6, Issue 2 & 3 9 Postmaster:
Page 11 and 12:
Volume 6, Issue 2 & 3 11 simplicity
Page 13 and 14:
Volume 6, Issue 2 & 3 13 LIFE FOCUS
Page 15 and 16:
Volume 6, Issue 2 & 3 15 understand
Page 17 and 18:
Volume 6, Issue 2 & 3 17 True Value
Page 19 and 20:
Volume 6, Issue 2 & 3 19 Financial
Page 21 and 22:
Volume 6, Issue 2 & 3 21 stream, an
Page 23 and 24:
Volume 6, Issue 2 & 3 23 References
Page 25 and 26:
Volume 6, Issue 2 & 3 25 These valu
Page 27 and 28:
Volume 6, Issue 2 & 3 27 ity. It is
Page 29 and 30:
Volume 6, Issue 2 & 3 29 work. Bein
Page 31 and 32:
Volume 6, Issue 2 & 3 31 TEN HEALTH
Page 33 and 34:
Volume 6, Issue 2 & 3 33 Financial
Page 35 and 36:
Volume 6, Issue 2 & 3 35 also subje
Page 37 and 38:
Volume 6, Issue 2 & 3 37 Retiree He
Page 39 and 40:
Volume 6, Issue 2 & 3 39 Assistance
Page 41 and 42:
Volume 6, Issue 2 & 3 41 typical no
Page 43 and 44:
Volume 6, Issue 2 & 3 43 eventually
Page 45 and 46:
Volume 6, Issue 2 & 3 45 assessment
Page 47 and 48:
Volume 6, Issue 2 & 3 47 Merlis, M.
Page 49 and 50:
Volume 6, Issue 2 & 3 49 UNDERSTAND
Page 51 and 52: Volume 6, Issue 2 & 3 51 Annual emp
Page 53 and 54: Volume 6, Issue 2 & 3 53 As previou
Page 55 and 56: Volume 6, Issue 2 & 3 55 contributi
Page 57 and 58: Volume 6, Issue 2 & 3 57 must be in
Page 59 and 60: Volume 6, Issue 2 & 3 59 Act also c
Page 61 and 62: Volume 6, Issue 2 & 3 61 References
Page 63 and 64: Volume 6, Issue 2 & 3 63 These type
Page 65 and 66: Volume 6, Issue 2 & 3 65 ENTER YOUR
Page 67 and 68: Volume 6, Issue 2 & 3 67 total retu
Page 69 and 70: Volume 6, Issue 2 & 3 69 First, at
Page 71 and 72: Volume 6, Issue 2 & 3 71 Figure 4:
Page 73 and 74: Volume 6, Issue 2 & 3 73 The user c
Page 75 and 76: Volume 6, Issue 2 & 3 75 Ibbotson A
Page 77 and 78: Volume 6, Issue 2 & 3 77 Income Rep
Page 79 and 80: Volume 6, Issue 2 & 3 79 asset allo
Page 81 and 82: Volume 6, Issue 2 & 3 81 maintain t
Page 83 and 84: Volume 6, Issue 2 & 3 83 Table 4 Ad
Page 85 and 86: Volume 6, Issue 2 & 3 85 Tezel, A.
Page 87 and 88: Volume 6, Issue 2 & 3 87 the outsta
Page 89 and 90: Volume 6, Issue 2 & 3 89 Table 1 De
Page 91 and 92: Volume 6, Issue 2 & 3 91 1998, prel
Page 93 and 94: Volume 6, Issue 2 & 3 93 Worry and
Page 95 and 96: Volume 6, Issue 2 & 3 95 Table 2 (c
Page 97 and 98: Volume 6, Issue 2 & 3 97 Q1 = 20-27
Page 99 and 100: Volume 6, Issue 2 & 3 99 significan
Page 101: Volume 6, Issue 2 & 3 101 in Later
Page 105 and 106: Volume 6, Issue 2 & 3 105 Lee, J.,
Page 107 and 108: Volume 6, Issue 2 & 3 107 Xiao, J.
Page 109 and 110: Volume 6, Issue 2 & 3 109 educating
Page 111 and 112: Volume 6, Issue 2 & 3 111 stock is
Page 113 and 114: Volume 6, Issue 2 & 3 113 Table 1 i
Page 115 and 116: Volume 6, Issue 2 & 3 115 Hypothesi
Page 117 and 118: Volume 6, Issue 2 & 3 117 defined a
Page 125 and 126: Volume 6, Issue 2 & 3 125 Conclusio
Page 127 and 128: Volume 6, Issue 2 & 3 127 Fama, E.
Page 129 and 130: Volume 6, Issue 2 & 3 129 • Marke
Page 131 and 132: Volume 6, Issue 2 & 3 131 Advertise
show all

3433-vol. 6 issue 2-3.pmd - iarfc

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?