Objective
Managing a debt portfolio requires complex decision making and is particularly challenging in the current climate of economic instability. Faced with various debts and diverse interest rates, consumers must decide the amount to allocate and the order in which to settle their debts. Issues of debt management also impact financial institutions such as banks and credit companies who need to understand how their borrowers prioritize their payments to be able to estimate the probability that their loans will be paid back. This research program aims to identify heuristics and biases that affect consumers when managing their debts. We examine when debt behaviors are aligned with normative strategies and when they lead people to make predictable but irrational decisions. Using versions of interactive debt management games as well as other experimental methods the program is designed to achieve three main goals: (1) identify sources of suboptimal debt management (Studies 1-2) (2) expand our understanding of the processes underlying debt management decisions (Studies 3-4), and (3) explore techniques to direct consumers toward more optimal debt management strategies (Studies 5-6). Along with its theoretical contribution, the proposed research program has important practical implications. Understanding how people perceive and manage their debts will allow financial organizations to create tools and procedures to assist their clients in managing their loans, and improving the rationality of their debt repayments.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
FP7-PEOPLE-2011-CIG
See other projects for this call
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
MC-CIG - Support for training and career development of researcher (CIG)
Coordinator
4610101 Herzliya
Israel
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.