Work

Credit card(s) and default risk: what ENFIH suggests for Mexican households

Year: 2025

Type: article

Abstract: This paper examines the impact of credit cards on the probability of defaulting on household debt in Mexico. Using probit models, we found that credit cards are directly related to household default in Mexico. Having more credit cards, an unpaid balance, or raising the average balance increases the household's likelihood of defaulting on its debt. In terms of financial inclusion, the findings suggest the need to provide financial education so that individuals know how to manage these financial instruments, which are more expensive and carry a higher credit risk.

Source: Trendinomics

DOI: 10.29105/trendinomics.v1i1.1

Authors: Julio César Arteaga García, Lianet Farfán Pérez

Institution: Universidad Autónoma de Nuevo León

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

OpenAlex ID: W4411370981

FWCI:

Cites: 12

Cited by:

Related to: 10