Abstract

http://ssrn.com/abstract=921909
 
 

References (30)



 
 

Citations (4)



 


 



Consumers' Use of High-Price Credit Products: Do They Know What They Are Doing?


Gregory Elliehausen


George Washington University - Financial Services Research Program

May 2006

NFI Working Paper No. 2006-WP-02

Abstract:     
A variety of consumer credit products have particular notoriety because of their high prices. The products include some small personal loans, pawnbroker loans, payday loans, automobile title loans, and refund anticipation loans. Critics of these credit products see little or no benefit to using high-price credit, assert that high-price credit products have great potential to harm consumers, and contend that consumers using such products often are uninformed or have been misled. This paper examines available evidence on consumers' use of high-price credit within the context of their credit situation and decision process. The findings indicate that users of high-cost credit generally fall into groups that economic theory predicts might benefit from use of such credit and suggest that decision processes for high-price credit products typically show signs of deliberation but usually do not include extensive problem solving. As such, decision processes for high-price credit products do not appear to be much different from decision processes for mainstream credit products.

Number of Pages in PDF File: 38

Keywords: high-price consumer credit, consumer credit decisions

working papers series


Download This Paper

Date posted: August 9, 2006  

Suggested Citation

Elliehausen, Gregory, Consumers' Use of High-Price Credit Products: Do They Know What They Are Doing? (May 2006). NFI Working Paper No. 2006-WP-02. Available at SSRN: http://ssrn.com/abstract=921909 or http://dx.doi.org/10.2139/ssrn.921909

Contact Information

Gregory Elliehausen (Contact Author)
George Washington University - Financial Services Research Program ( email )
Duques Hall, Suite 551
2201 G Street, NW
Washington, DC 20052
United States
202-994-0892 (Phone)
202-994-0907 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 1,698
Downloads: 299
Download Rank: 56,504
References:  30
Citations:  4

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.250 seconds