Good credit, bad credit: The differential role of the sources of debt in life satisfaction

This study evaluated the short-term links between different forms of household debt—credit card debt, student debt from relatives, mortgage car and arrears—and life satisfaction. To this end, a longitudinal dataset for US population Panel Study Income Dynamics (PSID) was used propensity score difference-in-differences approach applied. Credit loans negatively impacted satisfaction in short term (up to 2 years). Mortgages external financing car, however, were found increase The effects associated with initial uptake final repayment loan turned out not be symmetrical—the end any type contract related In case involuntary (i.e., arrears), significant negative impact on noted when problems emerged, while positive effect debts paid off.