A A Study of First Jobbers’ Consumption and Credit Card Debt in Bangkok, Thailand

Abstract

This article aims to study (1) consumption behavior and credit card debt accumulation, and (2) factors influencing credit card debt accumulation among the young first jobbers in Bangkok. This study adopts a descriptive research design, incorporating the life-cycle consumption framework, Maslow's hierarchy of needs (five levels), as well as the concept of "Choosing When to Act" in decision-making. The sample consists of 434 employees in the early stages of their careers or called first jobbers, with a stable income and access to credit cards, residing in Bangkok. Data was collected through primary sources, utilizing a questionnaire that gathered information on participants' personal details, credit usage, and attitudes toward present bias in consumption. The data was analyzed using descriptive statistics, inferential statistics, and econometric modeling, specifically multiple regression analysis employing the least squares method. The result of the study found that: Females generally have higher expenditures related to personal care, health, or education, while males tend to spend more on social activities. The proportion of savings to income among first jobbers increases with age. However, those employed in the hotel and restaurant industries typically have lower incomes and savings than those in other sectors. Additionally, first jobbers often exhibit a tendency to spend impulsively on social activities when opportunities arise, but this does not result in a corresponding increase in the payment of credit card debt each month. The study identifies key factors-savings, occupation, and spending on clothing and electronics-influencing debt behavior. While savings support financial stability, spending on such items increases reliance on credit cards and installment payments. The credit card service providers should have a policy to control the spending of first jobbers by setting shorter repayment periods, which will help reduce the debt burden, or by controlling the number of credit cards held.