Household debt over the life cycle
DOI:
https://doi.org/10.61190/fsr.v14i4.4833Keywords:
Credit card balances, Non-financial assets, Financial assets, Life cycle, Household debtAbstract
Using data from the 2001 Survey of Consumer Finances, this study examines how the holding of types and amounts of household debt changes over the life cycle. The results show that the likelihood of holding each type of debt and the amount of each type of debt compared to total assets decrease with age. Although the popular press has speculated that older households accumulate excessive amounts of mortgage debt and credit card balances, our results do not support this claim. However, there is evidence that it may be more difficult for poorer older households to pay off their credit card balances.
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