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Three puzzles have been identified in the literature regarding credit card puzzles:
- The first puzzle refers to the fact that the majority of households choose to borrow through high interest rate bearing credit card loans instead of lower cost commercial loans.
- The second puzzle involves the simultaneous borrowing through credit cards and accumulation of liquid assets.
- The third puzzle involves the simultaneous borrowing through credit cards and accumulation of illiquid assets for retirement.
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Category : Credit CardTags: commercial loans, Credit Card, Credit Card Puzzles