09/10/2024

How Some States Help Residents Avoid Costly Debt During Hard Times

Generous unemployment insurance benefits may be key

A new national study provides the best evidence to date that generous unemployment insurance benefits during the COVID-19 pandemic helped reduce reliance on high-cost credit use.

Researchers found that lower-income residents of states with more generous benefits were significantly less likely than those living in less-generous states to take out new credit cards, personal finance loans and payday loans or other alternative financial service offerings.

The study, published recently in the journal Nature Human Behaviour, was led by Rachel Dwyer, professor of sociology at The Ohio State University and Stephanie Moulton, professor in The Ohio State’s John Glenn College of Public Affairs.

Please select this link to read the complete article from Ohio State News.