Financial innovation to reduce inequality and promote equitable growth

Grant description:

If policymakers want to help low- and medium-income families pay down their debt, we need to better understand how families manage their debt and debt payments. This research will look at the different strategies families take to handle debts, including the tactic of “debt juggling,” where households pay just enough to avoid going into collection but make no progress in paying off the debts. The research will subsequently look at how policies informed by behavioral economics could help improve families’ debt management strategies.