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.



Citation:

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.

Authors

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



Volume

NA - Advances in Consumer Research Volume 42 | 2014



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