Legal Definitions - consumer debt

Definition: Consumer debt refers to the money owed by an individual for personal, family, or household purposes.

Examples: Examples of consumer debt include credit card debt, student loans, and personal loans.

Explanation: Consumer debt is different from other types of debt, such as business debt or government debt, because it is incurred for personal use. This type of debt is often used to finance everyday expenses or major purchases, such as a car or a home. The examples provided illustrate the different types of consumer debt that individuals may have. Credit card debt is a common form of consumer debt that is used to make purchases and is paid back over time with interest. Student loans are another type of consumer debt that is used to pay for education and is paid back over a longer period of time. Personal loans are also a form of consumer debt that can be used for a variety of purposes, such as home improvements or medical expenses.