Keeping Consumers in the Red: Hedonic Debt Prioritization Within Multiple Debt Accounts

Prior literature has demonstrated that consumers behave irrationally by paying down smaller balances instead of higher interest balances. Across three experiments, debt type (hedonic versus utilitarian) exacerbates the effect and we document anticipated consumption enjoyment as a mediator. Further, timing of the debt moderates debt type effects on account aversion.


Ali Besharat, Sajeev Varki, and Adam Craig (2014) ,"Keeping Consumers in the Red: Hedonic Debt Prioritization Within Multiple Debt Accounts", in NA - Advances in Consumer Research Volume 42, eds. June Cotte, Stacy Wood, and , Duluth, MN : Association for Consumer Research, Pages: 413-414.


Ali Besharat, University of Denver
Sajeev Varki, University of South Florida
Adam Craig, University of Kentucky, USA


NA - Advances in Consumer Research Volume 42 | 2014

Share Proceeding

Featured papers

See More


Consumers’ Attitudes Towards Their Rights and Responsibilities in the Sharing Economy: An Ideological Perspective

Marylouise Caldwell, University of Sydney, Australia
Steve Elliot, University of Sydney, Australia
Paul Henry, University of Sydney, Australia
Marcus O'Connor, University of Sydney, Australia

Read More


O7. Helpful Mental Shortcuts or a Shortcut to Bias? Two Perspectives on Heuristics and One New Direction for Consumer Research

Carly Drake, University of Calgary, Canada
Mehdi Mourali, University of Calgary, Canada

Read More


E2. Donation versus Adoption: How the Mode of Helping Moderates the Effect of Emotions on Helping

Ziqi Shang, Renmin University of China
Xiuping Li, National University of Singapore, Singapore
aradhna krishna, University of Michigan, USA

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.