Keeping Consumers in the Red: Hedonic Debt Prioritization Within Multiple Debt Accounts

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Keeping Consumers in the Red: Hedonic Debt Prioritization Within Multiple Debt Accounts
Objectives
The main objectives of the article are to find out the various psychological ways that can be used in maintaining the consumers loyal to the while handling the multiple debt accounts. Another objective is to help the debtors to pay down their small balances at a lower interest rate than overcharging them which can scare them off.
Methodology
This methodology involved in this research involved the use of psychological measures to determine consumer behavior regarding maintaining their debts and keeping around the organization’s products or services.
Summary of research results
This article indicates the methods that can be used in the psychological debt repayment. This involved series of experiments conducted to find out the debt repayment of the consumers and at the same time managing the multiple accounts (Besharat, Varki, & Craig, pp312). During the deeper analysis of the article, it is clearly indicated that there are irrational behaviors by the debtors with multiple (credit) cards. This is majorly felt during the process of paying back the smaller balances instead of the balances associated with higher interest rates.
Managerial implications of the research
There are various managerial implications on the multiple debt accounts. For instance, it becomes harder and more expensive for the compa…