Do Nudges Reduce Borrowing and Consumer Confusion in the Credit Card Market?. (3rd May 2022)
- Record Type:
- Journal Article
- Title:
- Do Nudges Reduce Borrowing and Consumer Confusion in the Credit Card Market?. (3rd May 2022)
- Main Title:
- Do Nudges Reduce Borrowing and Consumer Confusion in the Credit Card Market?
- Authors:
- Adams, Paul
Guttman‐Kenney, Benedict
Hayes, Lucy
Hunt, Stefan
Laibson, David
Stewart, Neil - Abstract:
- Abstract : We study nudges that turn out to have precise null effects in reducing long‐run credit card debt. We test nudges across two field experiments covering 183, 441 UK cardholders. Our first experiment studies nudges added to monthly credit card statements. Our second experiment studies letters and email nudges (separate from monthly statements) sent to cardholders who signed up to automatically pay the minimum required payment. In a follow‐up survey to our second experiment, we find that 96% of respondents underestimate the time it would take to fully repay a debt if the cardholder made only the minimum required payment. The nudges reduce this confusion, but underestimation remains overwhelmingly common.
- Is Part Of:
- Economica. Volume 89(2022)Supplement 1
- Journal:
- Economica
- Issue:
- Volume 89(2022)Supplement 1
- Issue Display:
- Volume 89, Issue 1 (2022)
- Year:
- 2022
- Volume:
- 89
- Issue:
- 1
- Issue Sort Value:
- 2022-0089-0001-0000
- Page Start:
- S178
- Page End:
- S199
- Publication Date:
- 2022-05-03
- Subjects:
- Economics -- Periodicals
330.05 - Journal URLs:
- http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1468-0335 ↗
http://onlinelibrary.wiley.com/ ↗ - DOI:
- 10.1111/ecca.12427 ↗
- Languages:
- English
- ISSNs:
- 0013-0427
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 3656.900000
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 22009.xml