the Isenberg School of Management

Consumers often make suboptimal loan prepayment choices

Consumers often make suboptimal loan prepayment choices Gaby Clark Scientific Editor Andrew Zinin Lead Editor When consumers pay down debt, many choose to put funds toward their oldest loans first—even when doing so may not make the most financial sense, according to recent research by Alicia M. Johnson, assistant professor of marketing at the Isenberg School of Management. In a paper published in the Journal of Marketing Research, Johnson and her co-authors examined how consumers decide...