ACBE论文

What the supply of the credit card debt.? Introduction With the development of economy , a lot of people around the world have credit card. What is the credit card? A card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Therefore, credit card create a convenience ways for people purchase goods what is they want. Obviously, Credit card is beneficial for people in some aspect. However, Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual's credit rating. It means credit risk will be exist, because getting into debt by using credit card is easy to do. Such as paying for clothes, groceries and power bills by credit card is common, as people carry less and less cash around with them. However, useing credit card is beneficial for bank and local economy. Recently, the Reserve Bank of Australia released the latest statistics of credit card debt Australia. It indicate that Australia is enjoying a stable increase in supply of credit card debt, which is a very good sign for the Australian economy. In another words, Credit Card allows people to make purchases against a pre-approved credit limit. People have a 25 day grace period on purchases. After the grace period ends people pay interest on any accessed funds for as long as people use them. Repaid funds are available for people to use again and again.. This report covers the credit card debt in the word, especially on supply sector. The principles, strategies of bank and action to credit card are included in this report. This report will show bank how to control interests which is beneficial or not in supply of credit card, and government how to regulate this situations. The peer group research report will have five main sections, which are Literature review, Method, Results, Discussion, Conclusion and Reference list.   Literature Review Annotated Bibliographies by Kevin (article) Joireman J, Kees J, and Sprott D, 2010 "concern with immediate consequence magnifies the impact of compulsive buying tendencies on college students' credit card debt". Vol.44, No. 1 In this article Jeff Joireman et al discuss the whether or not orientation moderates the influence of CBT( compulsive buying tendencies ) on credit card debt. The authors review that compilsive buyers who attention to maximizing immediate consequences are at a much higher risk of building up important amounts of credit card debt. For students, credit cards are a convenient way to pay anythings, include products and services. However, consumers can use credit unwisely. Sometimes, students carried high balances and usually pay only the minimum amount on each credit which they hold on. In this article, writers provided the method which can avoid this problems, and meanwhile they research focus on general statements regarding a person's tendency to take into account the future consequences of his/her behaviour. This article passed reliability test, because this article published by Blackwell association on 2010 which is up- to-date. As sources, this article provided two reliability tests. The main limitation is that the information in not all focuses on credit card debt. Apart of information indicates that the effects of debt during the students use credit card. However, this journal article provides significant additional information for my research on rebuild housing structures by government. (Newspaper.) In the newspaper of Australia, the news present that Australians have over $30 billion in credit debt, according to the Reserve bank, because people use credit card pay for power bills which means people can get personal loans or enter into "buy now, pay later" schemes. Some wise people pay off their full credit card balances every month, but there is a significant number who just make a minimum payment and wear the annual interest charges, which could be more than 20 per cent. Due to this phenomenon, banks in Australia develop some of new methods. Such as increasing repayment, consolidate debts by putting all personal cards into one with the lowest interest rate and cutting up the rest and consolidate all personal debts into mortgage loan. This article is useful and particular to my research topic as our topic is on supply of credit card debt. . It can be seen that bank how to control this consequence well which is credit card debt. This article passed reliability test, because this news published this article on june 2010 which means that information is currently data. On other hand, the news published by government. It's passed transparency test. The main limitation is that the information in not all focuses on credit card debt. Apart of information indicates that the effects of debt during the bank regulate the interest of credit card. However, this newspaper provides significant additional information for my research on supply of credit card debt in Australia. (website) "Bank or America platinum plus visa card offers low interest" 2009, jeremy simon, viewed on 29 August 2011, < http://www.creditcards.com/credit-card-news/bank-of-america-issues-low-interest-credit-card-1274.php> In this website, Jeremy simon review the consequence that bank of America offer low interest credit card in 2009. It means bank charges no annual fee in order to stimulate local economy. The authors use data to present how interest is lower than before. For example, bank provides the card holder with a 0 percent into APR on purchases and balance transfers for the first six months of card membership. Meanwhile, writers indicate that althoungh the Bank of America Platinum Plus Visa Card charges a low interest rate, its still providers members with a generous line of credit. Depending on their credit histories, cardholders may qualify for credit line of up to $25.000. Due to this actions, people in America prefer to use credit card with low interest. This newspaper is useful my report, the authors indicate this phenomenon that if bank control interest of credit card well, it can encourage local economy. This article passed reliability test, because this website set up by authority organization and updated on 2009. We can found all information in this website. It means that it not for advertising purposes. Although this article passed three of reliability test, the main limitation is that some of information not focuses on my research. However, the major information provided by website can be used as an additional information for my research. Method This research was finished by Kevin Dai and Hyeongbeen. The information was collected form difference sources including newspaper, website and book. The data of this research report were used to organize the poster and the oral presentation. The research report was focus on the bank controling interest of credit card sector. . For the research process, at least three resources were used per group mate. After that each member wrote three annotation bibliographies using these resources. This research report was divided into several parts which are introduction, literature review, method, result, discussion, conclusion and reference list. Kevin was in charge of introduction, method, and result. Hyeongbeen was in charge of discussion, conclusion and reference list. Both of they in charge of checking the bibliographies. The poster will be designed by the group. The poster will show the how the bank in charge of interest rate well which is beneficial for both of cardholders and local economy. Both of us agreed that the poster should be in light blue color. The font should be in black color. The content of the poster should mention about the supply of credit card debt in the word. The information should be shown in graphic. The bank policy will be separate into two different sections which change interest and increase repayment .The detail information will be shown in point form. The speech of the presentation needs to be related to the poster. The presentation should give out more detail about the information of the poster. Result In this research, we found that the bank in charge of supply of credit card debt can be divided into one part. This part is that bank can change interest rate which is control quantity of using. It is beneficial for bank and local economy. "Credit card interest is the principal way in which card issuers generate revenue" said by ( Wikipedia ,2010) According to Global economy website 2010, it said that banks suffer losses when cardholders do not pay back the borrowed money as agreed. As a result, optima calculation of interest based on any information they have about the cardholder's credit risk is key to card issuer's profitability. Therefor, banks regulate interest rates wary widely. Some credit card loans are secured by real estate, and can be as low as 6 to 12% . Typical credit cards have interest rates between 7 and 36%, depending largely upon the bank's risk evaluation methods and the borrower's credit history. In Brazilian bank- issued visa or mastercard to new account holder can have annual interest as high as 240% even though inflation seenms under control at around 6% per annum. Through this actions of change different interest rate to different people, which is beneficial for bank for several reasons. Firstly, it increase saving, which will reduce bankruptcies and foreclosures. Secondly , it increase bank deposits so bank can lend money to small businesses whom can in turn create new jobs. In other words, it promote local economy. Thirdly, it increase the motivation of entrepreneurs to go after opportunities. It can be seen that low interest rates cheapen the value of money and therefore reduce the value of hard work produce long- term wealth.