Consumer debt is a type of debt that is incurred by individuals for personal use, rather than for business purposes. It can include various forms of borrowing, such as credit card debt, personal loans, auto loans, and student loans. For many people, consumer debt can be a helpful tool that allows them to make purchases or investments that they would not be able to afford otherwise. However, it is important to manage consumer debt responsibly to avoid falling into a cycle of high-interest debt.
There are a number of factors that can contribute to consumer debt, including unexpected expenses, job loss, or changes in income. It is important to be aware of the potential risks of consumer debt and to take steps to manage it effectively. This may include creating a budget, reducing unnecessary spending, and seeking professional help if needed.