Are You Falling Behind on Credit Card Payments? The Internet Could Be the Reason
Could Your Credit Card Delinquency Be Blamed on the Internet? Shocking Study Reveals the Truth
Introduction: The Hidden Culprit Behind Your Mounting Credit Card Debt
Picture this: It's midnight, you're scrolling through your phone, and an irresistible ad pops up— "50% OFF TODAY ONLY!" Before you know it, you've added three items to your cart (possibly on Temu or anyone of those online shops), clicked 'Buy Now,' and charged another $200 to your credit card. A week later, the bill arrives, and you realize—you can't pay it off. How sad!
Sound familiar? You're not alone.
A groundbreaking study published in the North American Journal of Economics and Finance reveals a shocking truth: Internet access significantly increases the likelihood of credit card delinquency. That's right—your late payments and maxed-out cards might not just be due to poor budgeting. The internet itself could be pushing you into financial trouble.
But how? And what can you do about it?
In this article, we'll break down the research, explore why online shopping is so addictive, and provide actionable tips to avoid falling into the debt trap.
Key Terms Explained
Before we dive in, let's clarify some financial jargon:
Credit Card Delinquency – Missing one or more credit card payments.
Revolving Credit Balance – The unpaid portion of your credit card debt that carries over month-to-month.
Compulsive Buying – Uncontrollable urges to shop, often leading to financial distress.
Probit Model – A statistical method used in the study to measure the probability of delinquency.
Now, let's get into the shocking findings.
The Alarming Link Between Internet Access and Credit Card Delinquency
The study, conducted by economists Ficawoyi Donou-Adonsou and Hem C. Basnet, analyzed data from the 2013 Survey of Consumer Finance (SCF)—a goldmine for understanding American spending habits.
Their key findings:
✅ Households with internet access were 47.4% more likely to become delinquent on credit card payments compared to those without.
✅ Lower-income households, men, and married couples were the most vulnerable to delinquency due to internet use.
✅ Online shopping, easy credit approvals, and impulsive spending were major contributors to rising debt.
Why Does the Internet Make Us Spend More?
These are the reasons the internet make us spend more:
1. Instant Gratification – With one-click purchases, buying is effortless. No cash exchange means less psychological pain compared to handing over physical money.
2. Targeted Ads & "Deals" – Algorithms track your browsing habits and bombard you with personalized discounts, making overspending irresistible.
3. Credit Card Rewards – Cashback, points, and miles trick you into spending more to "earn" rewards.
4. Drunk Shopping & Late-Night Purchases – A 2017 study found Americans spent $30.43 billion on drunk online shopping!
Who Is Most at Risk?
Are you at risk of credit card delinquency due to internet access? If you're not, who then is?
The study broke down delinquency risks by demographics. Check the table below to find out if you're among the vulnerable groups.
| Group | Impact of Internet on Delinquency |
|---|---|
| Lower-Income | 45.6% higher risk (vs. upper-income) |
| Men | 54% higher risk (vs. women) |
| Whites | 47% higher risk (vs. non-Whites) |
| Married Couples | 56.5% higher risk (vs. singles) |
| Non-Seniors | 56% higher risk (vs. seniors) |
Why Are These Groups More Vulnerable?
- Lower-income households have less financial cushion, making missed payments more damaging.
- Men and married couples tend to have higher credit limits, leading to riskier spending.
- Younger consumers are more impulsive and less financially disciplined.
How to Protect Yourself from Internet-Induced Debt
1. Use Cash or Debit for Online Purchases
Switching from credit to debit removes the temptation of "buy now, pay later."
2. Set Spending Alerts & Limits
Most banks allow you to freeze your card or set daily spending caps.
3. Delete Saved Payment Methods
The fewer clicks it takes to buy, the more you'll spend. Remove stored credit cards from shopping sites.
4. Unsubscribe from Promotional Emails
Fewer ads = fewer temptations.
5. Try a "24-Hour Rule"
Before buying anything online, wait a day. Most impulse buys lose their appeal.
Interactive Poll: Are You Guilty of Overspending Online?
📌 How often do you make unplanned online purchases?
(Drop your answer in the comments!)
The Bigger Picture: Is Credit Card Debt a Ticking Time Bomb?
The study warns that as e-commerce grows (now 7.5% of all retail sales), credit card debt will keep rising.
Related Reads:
- The Dual Nature of Credit Cards: Blessings or Burdens?
- The Hidden Cost of Convenience: Why Your Contactless Card Could Be Making You Spend More
- Avoid Debt Traps from Loan Sharks: Understanding Interest Rates
Final Verdict: Is the Internet Really to Blame?
Yes—but it's not the only culprit.
While the internet fuels impulsive spending, personal discipline still plays a role. By setting boundaries, tracking expenses, and avoiding unnecessary debt, you can enjoy online shopping without the financial hangover.
What's Next?
If you've struggled with credit card debt, share your story below. And if you found this helpful, tag a friend who needs to see it!
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Your Turn:
Have you ever regretted an online purchase? How do you resist impulse buying? Let's discuss in the comments!
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