Seefeldt says ‘consumption smoothing’ behavior makes long-term recovery more difficult for economically vulnerable

In a study over six years of low- and moderate-income Detroiters, Kristin Seefeldt found that taking on debt to ‘smooth consumption’ during periods of income shortage increased future fiscal challenges and negatively impacted families’ well being. “Unfortunately, once in debt, getting out was difficult,” says Seefeldt.