Access to Credit and Exchanges of Financial Assistance among Family and Friends

• In Event: 2266 - Family Section Roundtables (1 hour)
  In Refereed Roundtable 60min: 20. Social Support, Extended Kin, and Social Capital

Abstract

The credit card market in the US is well developed. Yet, understandings of how access to a credit card influences social relationships are limited. We help address this gap by exploring how having a credit card influences exchanges of financial assistance among friends and family. Drawing on social exchange and altruism theories of informal social support, we suggest that access to a credit card can replace reliance on social ties for those in need of financial assistance; while access to a credit card facilitates the ability to provide help to others. Those effects, however, vary depending on social position and relationships. In particular, while credit is associated with a decreased likelihood of borrowing money from social ties, this effect is particularly pronounced for people who are married and for those earning middle- or high-incomes. These findings contribute to research on credit and also extend understandings of how informal social support networks are shaped by broader economic contexts.

Authors

• Colin Campbell, East Carolina University

• Maude Pugliese, McGill University