Analyzing Contemporary Credit Card Concerns through Behavioral Economics: Nudging Towards Responsible Usage
Year: 2025
Type: article
Abstract: The United Nations announced 17 sustainable development goals (SDGs) as part of its 2030 Agenda for Sustainable Development in 2015. Among these, two key goals, decent work and economic growth (SDG 8) and responsible consumption and production (SDG 12), are significant for a sustainable economy. Economic growth is inherently coupled with the production and consumption of goods and services. The financial transactions associated with goods and services are often influenced by people’s decisions because of certain behavioral patterns and cognitive biases. In the contemporary landscape, credit cards are an integral part of the financial system, which account for a significant share of everyday transactions. This article examines specific behavioral patterns people often exhibit while using credit cards. These behavioral patterns also give rise to different concerns, which may negatively affect sustainable economic development. This article makes an attempt to comprehend and analyze the issues associated with credit card usage, which raise severe challenges for economic sustainability, by using specific insights derived from the field of psychology and behavioral economics. The literature on psychology and behavioral economics provides valuable insights into human behavior during economic decision-making process. This study aims to provide a set of policy recommendations by referring to certain nudging techniques which can effectively facilitate the prudent usage of credit cards in the Indian context so that sustainable economic growth can be promoted. JEL Classification: E70, E71, G41, H30
Authors: Ritesh Bansal, Joby Varghese
Institution: Indian Institute of Technology Jammu
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4413313506