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A territory-wide survey conducted by the Hong Kong Federation of Youth Groups found that around 15 per cent of young people had exceeded their balance of credit and had felt depressed over credit cards payments. Another 10 percent of respondents continued to use their credit cards in spite of not having sufficient funds, indicating that some young people failed to manage their finance cautiously.
Around 70 per cent of respondents agreed that payment by credit cards encouraged consumption, while another 60 per cent agreed that it also resulted in indisciplined budgeting, suggesting that some young people's self-discipline weakened when using credit cards.
The survey showed that credit cards were very popular among young people. More than 70 per cent of respondents had credit cards, with those between the ages of 25 and 29 more eager to apply for credit cards. Slightly more than 60 per cent were in the habit of using credit cards to pay bills. A similar percentage of respondents were of the view that in today's society everyone should have at least one credit card. Around 40 per cent of respondents said credit cards applications should not be limited to people with financial ability only.
With regard to paying credit cards debts, around 20 per cent of respondents paid the minimum, while leaving the balance for later. Some young people had the experience of applying for another credit card in order to pay previous credit cards balances. When asked what they would do if they failed to make the statement balance by the payment due date, some 30 per cent of respondents said that they would pay the minimum payment first. The second most popular solution was to ask for financial assistance from family members.
The Hong Kong Federation of Youth Groups conducted this telephone survey from 16 to 19 August 1999. A total of 521 young people, aged 18 to 34, were successfully interviewed. The survey found that young people would consider borrowing money primarily to pay for mortgages, pay the rent or buy the flats. More than 40 per cent of young people would approach banks for money borrowing.
When asked how they decided on the amount of the credit cards limit, 40 per cent of respondents with credit cards said that it depended on the bank's arrangement. Only around 16 per cent of respondents said it was based on personal need. Among respondents with credit cards, more than 60 per cent of them earned less than $20,000 per month, but more than one-third needed to pay $2,000 or more per month for credit cards debt. The findings suggested that some young people needed to reserve a certain amount of income to pay credit cards debts.
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Youth Opinion Polls No. 70
