Consumer Debt

Consumer debt refers to the money that individuals borrow for personal use, often to purchase goods and services. This includes loans like credit cards, personal loans, auto loans, and mortgages. When consumers use credit to finance their purchases, they incur debt that needs to be repaid over time, usually with interest. High levels of consumer debt can lead to financial stress, affecting individuals' ability to meet monthly obligations and save for the future. It's important for consumers to manage their debt wisely to maintain financial stability and avoid negative consequences, such as bankruptcy or poor credit ratings.