tag:blogger.com,1999:blog-2980246226076317453.post1897806660048890231..comments2024-03-27T09:17:51.095-07:00Comments on Done by Forty: Do Credit Cards Actually Increase Spending?Done By Fortyhttp://www.blogger.com/profile/06246597867355460723noreply@blogger.comBlogger55125tag:blogger.com,1999:blog-2980246226076317453.post-24749010307420073712019-04-20T01:10:45.958-07:002019-04-20T01:10:45.958-07:00This comment has been removed by a blog administrator.Robert D. Lennoxhttps://www.blogger.com/profile/08926855612076000215noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-92038448175984002252019-03-12T02:24:19.398-07:002019-03-12T02:24:19.398-07:00This comment has been removed by a blog administrator.Silke Fisherhttps://www.blogger.com/profile/06691588960594045952noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-27705958502345432562019-02-04T03:53:59.809-07:002019-02-04T03:53:59.809-07:00This comment has been removed by a blog administrator.brittanymlemayhttps://www.blogger.com/profile/05828142970980753025noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-66892980437190735432019-01-10T23:00:52.535-07:002019-01-10T23:00:52.535-07:00This comment has been removed by a blog administrator.Richard C. Lamberthttps://www.blogger.com/profile/14766504022599651016noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-4074706528104531282018-05-01T07:08:12.612-07:002018-05-01T07:08:12.612-07:00We’ll things such take another look at to two styl...We’ll things such take another look at to two styles of users: newly released Zune vendors who will be making plans for an upgrade, and the ones doing this to come to the conclusion between a Microsoft zune plus an ipod touch. (A lot more professionals worthwhile considering available to choose from, which include the The new sony Personal stereo Times, however This particular this supplies you sufficient research to get the best idea from Zune instead of masters as apposed to the iPod brand similar.) <a href="https://friendlylikes.com" rel="nofollow">buy Intargram followers</a><br />mtomhttps://www.blogger.com/profile/15864302221310251976noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-36478410145175994632013-10-23T09:24:06.343-07:002013-10-23T09:24:06.343-07:00I'm not sure it's that simple. Rewards car...I'm not sure it's that simple. Rewards cards almost always have higher merchant fees: the card companies could simply be incenting the cardmember to use that card in order to collect the higher fees from the merchant.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-9893056761510798652013-10-23T01:11:42.064-07:002013-10-23T01:11:42.064-07:00The fact that rewards are offered for credit card ...The fact that rewards are offered for credit card use is proof enough that consumers are being urged to spend more and if one has not enough discipline, there is the tendency to be swipe-happy. Credit card or cash, it is a matter of knowing when to stop. Jen @ Frugal Ruleshttp://www.frugalrules.comnoreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-10282266097463797832013-10-22T11:28:31.448-07:002013-10-22T11:28:31.448-07:00Hi Andrew,
I agree that seems to be the general c...Hi Andrew,<br /><br />I agree that seems to be the general consensus and I'm not entirely sure what to believe re: credit cards impact on spending. That said, I'm like you in that I put my spending on the card. So how convinced can I be of their risks if I continue to use them instead of other options, like debit or cash?Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-25700010449071046692013-10-22T11:10:34.839-07:002013-10-22T11:10:34.839-07:00Hi Ryan,
That's certainly possible, but I'...Hi Ryan,<br /><br />That's certainly possible, but I'd have to see data that represents that rather than anecdotal evidence.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-66185569321822372742013-10-22T11:09:02.937-07:002013-10-22T11:09:02.937-07:00Hi DC,
I think this study is fairly unique in tha...Hi DC,<br /><br />I think this study is fairly unique in that it specifically addresses the impact of a consumer's choice in payment method in a real market setting. I agree further studies would be great. But other posters have cited studies that deal with the same issues.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-16088405495225139162013-10-22T07:55:52.995-07:002013-10-22T07:55:52.995-07:00It definitely sounds counter-intuitive and I'm...It definitely sounds counter-intuitive and I'm with DC that they might need to do more studies on it. I think the general consensus is that you spend more with a credit card. I'd like to think that I'm pretty good with spending whether it be with credit or cash, and that using credit doesn't induce me to spend more, but in some ways I think it probably does. I do like credit card spending to get rewards and so I don't have to get change.Andrew@LivingRichCheaplyhttp://www.livingrichcheaply.comnoreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-37398954270728600792013-10-22T02:20:31.027-07:002013-10-22T02:20:31.027-07:00I don't really agree with the conclusion of th...I don't really agree with the conclusion of the experiment. Based on personal experience, credit cards DO increase spending especially on the hands of someone who doesn't have cash. It's a scary tool for people unable to resist temptations. More research should be done I'm afraid. Ryan Mcannhttps://www.facebook.com/GoldIraRolloverTipsnoreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-10741246838835637842013-10-21T18:21:17.022-07:002013-10-21T18:21:17.022-07:00My only real reaction to this is that we need more...My only real reaction to this is that we need more research on this topic. One study is not enough.DC @ Young Adult Moneyhttp://www.youngadultmoney.comnoreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-46474944265594971652013-10-21T10:14:21.040-07:002013-10-21T10:14:21.040-07:00I feel similarly to cash but, thanks in part to th...I feel similarly to cash but, thanks in part to the studies that other posters have linked to, I wonder if I'm simply noticing the cash being spent (i.e. - feeling the pain of spending cash). So, am I actually spending more, or just noticing my spending more often or more acutely?Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-37156228480601639752013-10-21T10:13:00.231-07:002013-10-21T10:13:00.231-07:00We're the same way. I hate carrying cash.We're the same way. I hate carrying cash.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-91953892671419111242013-10-21T10:12:36.613-07:002013-10-21T10:12:36.613-07:00I agree with that idea. These studies are looking ...I agree with that idea. These studies are looking at human behavior in aggregate only, so there's an incentive to really know your own behavior. Know yourself and the rest falls into place.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-28924744759231919692013-10-21T09:49:11.841-07:002013-10-21T09:49:11.841-07:00I think some people do but I personally don't....I think some people do but I personally don't. I actually spend more money when I have cash. Cash burns a hole in my pocket.Debt and the Girlhttp://www.debtandthegirl.comnoreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-70975442756103522862013-10-21T09:26:24.133-07:002013-10-21T09:26:24.133-07:00Cash back and rewards are enough of an incentive f...Cash back and rewards are enough of an incentive for me to use my credit card for just about anything. In fact, I get annoyed when I have to pay in cash or with a check.Anonymoushttps://www.blogger.com/profile/11378658961997515035noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-68083982565923356102013-10-21T09:12:21.690-07:002013-10-21T09:12:21.690-07:00I'm not sure, but I know that at least right n...I'm not sure, but I know that at least right now, we're being extra cautious. I started using a card in the spring for gasoline only, but things got out of hand real quick, so we went back to cash. I think Holly's right when she says it depends on the person. Maybe we just need to get stronger first, on a psychological level. Laurie @thefrugalfarmerhttp://www.thefrugalfarmer.net/noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-67199363812712644412013-10-21T07:28:50.792-07:002013-10-21T07:28:50.792-07:00That's so cool that you got to hear some of th...That's so cool that you got to hear some of these professors lecture. I actually spent a summer at CMU back in high school for this super nerdy program called Andrew's Leap, but we unfortunately spent our time coding and playing ultimate frisbee, instead of learning about personal finance and behavioral economics. Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-53433030745029785372013-10-21T07:27:19.276-07:002013-10-21T07:27:19.276-07:00Right! Mom @ Three is Plenty is citing another stu...Right! Mom @ Three is Plenty is citing another study that cites that pain (Emily Capito cited another higher up in the comments). That pain of spending cash puts downward pressure on spending, apparently.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-32526618381127400112013-10-21T07:26:02.757-07:002013-10-21T07:26:02.757-07:00We're the same type of cc users, Holly. I don&...We're the same type of cc users, Holly. I don't know how easily we could move to cash now that we're accustomed to the tracking online. The thought of managing piles of paper receipts makes my stomach turn...<br /><br />Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-24665390954156024082013-10-21T07:24:54.766-07:002013-10-21T07:24:54.766-07:00Hi Laurie,
I agree that the "funny money"...Hi Laurie,<br />I agree that the "funny money" aspect of CC makes it potentially easier to just spend now and worry about it later. Though I wonder now that you're so on point with your financial plan, might that impact be mitigated/eliminated?Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-45079491473528136922013-10-21T07:23:20.639-07:002013-10-21T07:23:20.639-07:00That's a good point about revolvers: they may ...That's a good point about revolvers: they may have their own form of liquidity constraint to deal with. I agree that 15% on a lunch is not a big dollar amount but it's big enough to exceed the typical rewards payback on the credit card. I think that'd be the big risk for a convenience user like me: feeling like I was gaming the system, but ultimately spending more.<br /><br />I think I'll try to reach out to the authors to see if they'd be open to an interview...would love to dig deeper.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-77290635105084104632013-10-21T07:21:27.912-07:002013-10-21T07:21:27.912-07:00Lowenstein is an extremely interesting individual ...Lowenstein is an extremely interesting individual - I went to a few of his studies and sat in on some of his lectures while I was at CMU. He works closely with Dan Ariely on these types of studies, and their real take away has previously been that there is a "pain" related to paying by cash that CC users don't have, so folks tend to spend less when paying with cash. http://blogs.fuqua.duke.edu/facultyconversations/2013/01/14/dan-ariely/Mom @ Three is Plentyhttp://3isplenty.comnoreply@blogger.com