Athreya, Kartik; Sanchez, Juan M.; Tam, Xuan S.; Young, … - 2023
This paper documents and interprets a fact central to the dynamics of informal consumer debt default: delinquency does not mean a persistent cessation of payment. In particular, we observe that for individuals 60 to 90 days late on payments, (i) 85% make payments during the next quarter to avoid...