Annamaria Lusardi|Peter Tufano
Debt literacy, financial experiences, and overindebtedness
George Washington University|Science Oxford|University of Oxford
abstract analyze national sample americans respect debt literacy financial experiences judgments extent indebtedness debt literacy component broader financial understanding measures knowledge debt selfassessed financial knowledge financial experiences participants reported experiences traditional borrowing alternative borrowing investing overindebtedness selfreported measure debt literacy low onethird population grasping basics interest compounding even controlling demographics find relationship debt literacy financial experiences debt loads individuals lower levels debt literacy tend transact highcost manners incurring higher fees using highcost borrowing provide rough estimate national implications debt ignorance credit card costs consumers less knowledgeable individuals also report debt loads excessive unable judge debt position