John Gathergood|Joerg Weber
Self-control, financial literacy &amp; the co-holding puzzle
University of Nottingham|University of Nottingham
use uk survey data analyze puzzling coexistence high cost revolving consumer credit alongside low yield liquid savings household balance sheets name coholding puzzle approximately 12 households sample cohold average 3800 revolving consumer credit incur interest charges even though could immediately pay debt using liquid assets coholders typically financially literate average income education estimates coholding also associated impulsive spending behavior part household results provide empirical support theoretical models households cohold means managing selfcontrol problems