This thesis investigates the effects of government benefit payments and conditional
cash transfers (CCT) on the financial behaviors of low-income households through three
studies. The first study examines how the timing of benefit payments impacts credit
usage, revealing that later payments increase reliance on credit and delinquency rates.
The second study explores the effects of unexpected cash transfers on credit outcomes,
finding that such transfers boost credit card usage and improve credit terms for the
poorest households. The third study analyzes the impact of losing CCT benefits, showing
a temporary rise in credit card expenditures following the loss but no significant change
for those below the extreme poverty line. These findings provide insights into how cash
transfers influence financial stability and credit access, offering guidance for policies aimed
at enhancing financial inclusion for vulnerable populations.
