Ponce, Alejandro; Seira, Enrique; Zamarripa, Guillermo - 2014
We study how consumers allocate debt across credit cards they already hold using new data on credit card activity for a … representative sample of consumers with two homogeneous cards in Mexico. We find that relative prices are a very weak predictor of … the allocation of debt, purchases, and payments. On average, consumers pay 31% above their minimum financing cost …
