In the lifecycle theory,a worker does most of her borrowing during her early working years.

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According to the lifecycle theory, workers generally borrow more during their early working years as they are still building their careers and have a lower income relative to their future income potential. As they progress in their career and their income increases, they are able to save more and pay off their debts, resulting in a decrease in borrowing.

In the Lifecycle Theory,a Worker Does Most of Her Borrowing