Consumer Debt

Consumer debt is the credit for personal expenses. It is the fund consumption rather than investment. It is said to be very unfavorable and usually takes the form of credit card balance, pay down loan or consumer finance.

Consumer debt interest rates are very high compared to the secured loans and unsecured loans. The consumer interest rates depend on the current economic situation and the financial status of the individual. Long term consumer debt is more often considered fiscally suboptimal.

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