Liquidity Constraints and Credit Card Delinquency: Evidence from Raising Minimum Payments
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DOI: 10.1017/s0022109017000412
Abstract: We use credit card data to estimate the impact of increasing minimum payments on delinquency, payments, spending, and write-offs. Our identification strategy exploits an unusual institutional feature: Borrowers can use their account to make purchases… read more here.
Keywords: liquidity constraints; delinquency; minimum payments; credit card ... See more keywords