Less Is Core: Consumer Debt Repayment and the Budget Constraint Paradox

How does financial constraint affect debt repayment behavior? Using a sample of indebted consumers, we find that higher levels of financial constraint are predictive of meeting both short-term financial goals and the long-term goal of paying off debt. Paradoxically, consumers with less money are more likely to repay their debts.


Russel Nelson, Mary Celsi, Mary Gilly, and Stephanie Dellande (2014) ,"Less Is Core: Consumer Debt Repayment and the Budget Constraint Paradox", in NA - Advances in Consumer Research Volume 42, eds. June Cotte, Stacy Wood, and , Duluth, MN : Association for Consumer Research, Pages: 622-623.


Russel Nelson, University of California, Irvine, USA
Mary Celsi, California State University, Long Beach, USA
Mary Gilly, University of California, Irvine, USA
Stephanie Dellande, Menlo College, USA


NA - Advances in Consumer Research Volume 42 | 2014

Share Proceeding

Featured papers

See More


Handshaking Promotes Deal-Making By Signaling Cooperative Intent

Juliana Schroeder, University of California Berkeley, USA
Jane Risen, University of Chicago, USA
Francesca Gino, Harvard Business School, USA
Michael Norton, Harvard Business School, USA

Read More


Which Healthy Eating Nudges Work Best? A Meta-Analysis of Field Experiments

Romain Cadario, IESEG School of Management
Pierre Chandon, INSEAD, France

Read More


F9. Protection against Deception: The Moderating Effects of Knowledge Calibration on Consumer Responses to Ambiguous Advertisement Information

Joel Alan Mohr, Queens University, Canada
Peter A. Dacin, Queens University, Canada

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.