Balancing savings and debt: Findings from an online experiment

Balancing savings and debt: Findings from an online experiment


One of many financial challenges facing consumers is to balance the goal of having a savings cushion that offers financial security with the goal of limiting the amount of debt they hold. In fact, most U.S. consumers hold savings and debt at the same time. People take on debt for many reasons, with the cost of holding different types of debt varying substantially.

In holding savings and debt simultaneously, however, consumers face a choice: how much debt to pay down versus how much savings to retain. The Office of Research released a research brief summarizing the results of an online experiment exploring how the amount of available savings may influence decisions about using savings to pay down credit card debt.

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Credit Card Debt Savings




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United States







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