Borrow less tomorrow

Karlan, Dean, and Jonathan Zinman. “Borrow less tomorrow”. Financial Security Project 2012-1, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, May 2012. http://hdl.handle.net/2345/bc-ir:104924.
PREVIEW Datastream

Abstract

Mounting evidence suggests that behavioral factors depress wealth accumulation. Although much research and policy focuses on asset accumulation, for many households debt decumulation is more efficient. Yet the mass market for debt reduction services is thin. So we develop and pilot test Borrow Less Tomorrow (BoLT), a behavioral approach to debt reduction that combines a simple decision aid, social commitment, and reminders. Results from a sample of free tax-preparation clients with eligible debt in Tulsa (N=465) indicate strong demand for debt reduction: 41% of those offered BoLT used it to make a plan to accelerate debt repayment. Using random assignment to BoLT offers, we find weak evidence that the BoLT package offered reduces credit card debt.

Title
Borrow less tomorrow: Behavioral approaches to debt reduction
Author
Karlan, Dean
Zinman, Jonathan
Center
Center for Retirement Research
Genre
working paper
Date Issued
May 2012
Publisher
Center for Retirement Research at Boston College
Series Title
Financial Security Project
Series Number
2012-1
Persistent Link
http://hdl.handle.net/2345/bc-ir:104924
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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