This study compared the expenditure patterns of borrowers and non-borrowers using data from Consumer Expenditure Surveys. Consumers who are borrowers tend to spend more on commodities that demonstrate their wealth or desired social class. Designers could benefit by further understanding consumer expenditure patterns on commodities, such as household furnishings and equipment, because there is a connection between consumer borrowing and consumer expenditure.

Findings

Researchers spent adequate time initially with homeowners to discern the goals and needs they associate with their environment. Many consumers value creating a social display at home of their perceived or desired wealth and status and are willing to accumulate debt through purchases of home furnishings and equipment to fulfill that desire. However not everyone considers furnishings and equipment to be necessities.

Key Concepts

Today, credit does not hold the same negative connotation that “debt” has held in the past; it is considered a typical part of personal budgeting for the majority (60.46%) of Americans.

Consumers who are credit card borrowers (those who have accumulated debt), place more emphasis on purchasing luxury commodities such as household furnishings and equipment including furniture, floor coverings, textiles, appliances, and small equipment than non-borrowers do.

On average, consumers who are borrowers have more education, are younger, Caucasian, and predict higher future income for themselves than non-borrowers.

Borrowers spend less on necessities (shelter, food at home, and utilities) and some luxury commodities (vacation homes and out-of town trips), but spend more on household furnishings and equipment, apparel, entertainment, and food away from home than non-borrowers.