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

Authors

DOI:

https://doi.org/10.29105/trendinomics.v1i1.1

Keywords:

Credit cards, Probability of defalut, Debt, Mexican households

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.

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References

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Published

2025-06-12

How to Cite

Arteaga García, J. C., & Farfán Pérez, L. (2025). Credit card(s) and default risk: what ENFIH suggests for Mexican households . Trendinomics, 1(1), 1–9. https://doi.org/10.29105/trendinomics.v1i1.1

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Articles