How do individuals repay their debt?: the balance-matching heuristic
We study how individuals repay their debt using linked data on multiple credit cards. Repayments are not allocated to the higher interest rate card, which would minimize the cost of borrowing. Moreover, the degree of misallocation is invariant to the economic stakes, which is inconsistent with optim...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
American Economic Association
2018
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| Online Access: | https://eprints.nottingham.ac.uk/54171/ |