ways: A debt effect increases credit card spending, while a credit effect leads to higher credit limits. In the short run … crisis, the credit effect exceeded the debt effect in the long run, pushing down long-term utilization. In our sample period … after the financial crisis, the debt effect dominated in the long run, and credit card utilization rates rose upon the …

the Great Recession, there was a historic run-up in household debt, driven primarily by housing debt, which coincided with … recession since the 1930s. Following the steep increase in debt balances during the boom, households began rapidly paying off … their loans during and immediately after the Great Recession. Since 2013, debt has begun to increase and eventually rise …

between household debt levels, financial stability risks, and the ongoing implications of the ‘debt overhang’ for economic … growth. However, accurately measuring the household debt burden remains problematic. Aggregate measures of household … indebtedness (e.?g. household liabilities relative to income) fail to fully capture the debt servicing burdens of households …

Using detailed micro data, we document that households often use "stimulus" checks to pay down debt, especially those … otherwise standard incomplete markets model. Because interest rates rise with debt, borrowers have increasingly larger … incentives to use an additional dollar to reduce debt service payments rather than consume. Using our calibrated model, we then …

This paper studies the direct impact of households' debt on consumption over the business cycle. We use household … leverage, consumption, and asset prices. We find that debt levels exert a negative impact on consumption, which is particularly …' debt in past periods are not relevant in determining consumption; (ii) households adjust faster their consumption to debt …

We use information from the last wave of the Spanish Survey of Households Finance to study the influence of debt on the … smaller MPC than non-indebted households. This negative association increases along with the amount of debt. We also find a …

This paper examines whether biased income expectations due to overconfidence lead to higher levels of debt-taking. We … show suggestive evidence for a link between overconfidence and borrowing behavior in a representative survey of German …. Overconfident participants scale back their consumption after income feedback. However, they remain in higher debt at the end of the …