|dc.contributor.author||Thipe, Gladys Kefilwe||
|dc.description||MBA North-West University, Mafikeng Campus, 2016||en_US
|dc.description.abstract||The main purpose of this study was to investigate the impact of credit card incentives
on consumer borrowing. The use of credit cards has been on the increase for the
past few years. To date many people, do not clearly understand how credit cards
operate. With credit cards people are able to buy certain goods and services without
having money in their accounts, and in the process indulge in impulse buying which
results in serious debt. This problem is further compounded by credit card incentives
offered by banks to lure more customers who will end up overspending. However, if
managed properly credit cards can be very beneficial as they offer safety and
convenience to the purchasing process. Most consumers now prefer using credit
card instead of cash and cheques as it is considered a better substitute.
A quantitative research design has been followed in order to obtain conclusive
results. It has been useful in generating new ideas about the research problem.
Primary data was obtained by use of questionnaires. This enabled the researcher to
get relevant and conclusive results. A convenience sampling technique was used.
From a sample of 100 questionnaires sent out, only 94 were completed and returned
back, thus the researcher was able to do an analysis.
It was deduced that the greater number of respondents were knowledgeable about
credit cards but did not have a full understanding as noted by how easily they got
attracted to credit card incentives offered by banks. The research findings reveal that
the majority of respondents are experiencing financial difficulties as they fail to keep
up with repayments on their credit card debt.
It has also been noted that a direct relationship exists between credit card incentives
and consumer borrowing. For instance, if credit card incentives increase consumer
spending rises, thereby increasing consumer debt. The research concluded with
recommendations highlighting the need for efficient regulatory systems, the need for
responsible lending and borrowing and the availability of a conducive and
appropriate enabling monitoring and evaluation system that fosters the development
of a vibrant credit market.||en_US
|dc.publisher||North-West University (South Africa) Mafikeng Campus||en_US
|dc.title||The impact of credit card incentive packages on consumer borrowing among bank customers in Pretoria North, South Africa||en_US