In economics, consumer debt is the amount owed by consumers, as opposed to that of businesses or governments. In macroeconomic terms, it is debt which is used to fund consumption rather than investment.

It includes debts incurred on purchase of goods that are consumable and/or do not appreciate.

To make a consumer buy an item on debt (someone who does not have any money, buys a product with out on debt or loan)

Consumer debt is also associated with predatory lending, although there is much debate as to what exactly constitutes predatory lending.

The most common forms of consumer debt are credit card debt, payday loans, and other consumer finance, which are often at higher interest rates than long-term secured loans, such as mortgages.

The amount of debt outstanding versus the consumer’s disposable income is expressed as the consumer leverage ratio.

On a monthly basis, this debt ratio is advised to be no more than 20 percent of an individuals take-home pay.

The interest rate charged depends on a range of factors, including the economic climate, perceived ability of the customer to repay, competitive pressures from other lenders, and the inherent structure and security of the credit product. Rates generally range from 0.25 percent above base rate, to well into double figures. Consumer debt is also associated with predatory lending, although there is much debate as to what exactly constitutes predatory lending.