Household Mismanage the Liability Side of Their Balance Sheets (Or at least evidence suggests that they do) Potential sources of decision inefficiency – Overspending – Misallocation  Credit cards  Student loans – Failure to take-up workouts (e.g., HAMP) – *Undershopping  Upfront contract choice (e.g., overpaying)  When refinancing, or not Money on table => Money to be made
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