Consumer Credit Card Debt and Immigrants: A Cross-Sectional Study of U.K. Immigrants’ Financial Capability

Abstract

Purpose: This study examines the ubiquitous nature and high level of consumer debt associated with certain demographics, with a specific focus on immigrants in the U.K.
 Methodology: A cross-sectional approach was deemed appropriate because the information used for analysis was based on specific points in time for the years 1995, 2000, and 2005. The sample method used was representative of all persons who were resident in Britain at multiple time points consistent to the waves of data collection. The sample used for this analysis was U.K. residents included in the BHPS during the years 1996, 2001, and 2006.
 Findings: The results showed that individuals with higher levels of education acquired more debt compared to lesser educated people, that credit card debt increased the total consumer debt owed, and that larger households incurred more consumer debt.
 Unique contribution to theory, practice and policy: The findings from this study may assist in positive social change by providing specific information to banks and lending institutions on how they can manage the credit This study might help in expanding the body of knowledge about the association of credit debt and immigrants in UK, which has received a growing interest among researchers in the field of finance, economics and ethnopolitics.
 Keywords: Credit debt, Immigrants, Consumer behavior, ethnicity, financial inequality