Consumer debt is consumer credit which is outstanding. In macroeconomic terms, it is debt which is used to fund consumption rather than investment. Consumers refers to individuals or households that purchase and use goods and services generated within the economy. ... Credit as a financial term, used in such terms as credit card, refers to the granting of a loan and the creation of debt. ... Circulation in macroeconomics Macroeconomics is a branch of Economics that deals with the performance, structure, and behavior of the economy as a whole. ... In economics, consumption refers to the final use of goods and services to provide utility. ... Invest redirects here. ...

Some consider all debt incurred for anything else other than investments unwise or detrimental to the economy^{[citation needed]}, while others believe that consumer credit is beneficial to the economy. Historically, across many cultures, being in personal debt was considered almost immoral. More recently, an alternative analysis might view consumer debt as a way to increase domestic production, on the grounds that if credit is easily available, the increased demand for consumer goods should cause an increase of overall domestic production. The permanent income hypothesis suggests that consumers take debt to smooth consumption throughout their lives, borrowing to finance expenditures (particularly housing and schooling) earlier in their lives and paying down debt during higher-earning periods. For other uses, see Debt (disambiguation). ... Post-Keynesian economics is a school of thought which is based on the ideas of John Maynard Keynes. ... To meet Wikipedias quality standards, this article or section may require cleanup. ...

Both domestic and international economists have supported a recent upsurge in South Korean consumer debt, which has helped fuel economic expansion. On the other hand, credit card debt is almost unknown just across the sea in Japan and China, one because of long standing historical biases against personal debt, the other because the economy is still underdeveloped. Theoretical underpinnings aside, personal debt is on the rise, particularly in the United States and the UK.

The most common form of consumer debt is 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 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% above base-rate, to well into double figures. Consumer debt can be associated with Predatory lending, although there is much debate as to what exactly constitutes predatory lending. Credit card debt is an example of unsecured consumer debt. ... A shop window in Falls Church, Virginia advertises Payday loans. ... Consumer finance in the most basic sense of the word refers to any kind of lending to consumers. ... An interest rate is the price a borrower pays for the use of money he does not own, and the return a lender receives for deferring his consumption, by lending to the borrower. ... A loan is a type of debt. ... Mortgage loan is the generic term for a loan secured by a mortgage on real property; the mortgage refers to the legal security, but the terms are often used interchangeably to refer to the mortgage loan. ... Le Mont-de-Piété (The Pawn Shop) or Chez Ma Tante by Jean Béraud Predatory lending is the practice of a lender deceptively convincing borrowers to agree to unfair and abusive loan terms, or systematically violating those terms in ways that make it difficult for the borrower to...

Long-term consumer debt is often considered fiscally suboptimal. While some consumer items may be useful investments that justify debt (such as automobiles, which are usually but not always exempted in discussions of consumer debt, and business suits), most consumer goods are not. For example, incurring high-interest consumer debt through buying a big-screen television "now", rather than saving for it, can not usually be financially justified by the subjective benefits of having the television early. On the other hand, personal finance advisors like Robert Kiyosaki encourage a more liberal attitude towards taking on debt if it can be leveraged into a small business or real estate. This higher-risk, possibly high-outcome, "personal-finances-as-a-game" attitude runs counter to the traditional mores of rising slowly through the ranks of a company through discipline and hard work, but may have increasingly validity in an age of globalization. Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. ... Karl Benzs Velo (vélo means bicycle in French) model (1894) - entered into the first automobile race 2005 MINI Cooper S. An automobile (also motor car or simply car) is a wheeled passenger vehicle that carries its own motor. ... Robert Toru Kiyosaki (born April 8, 1947) is an investor, businessman, self-help author and motivational speaker. ...

In many countries, the ease with which individuals can accumulate consumer debt beyond their means to repay has preciptated a growth industry in debt consolidation and credit counseling. Credit counseling (known in the United Kingdom as debt counselling) is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. ...

See also

• Consumerism
• Predatory lending
• United States public debt
• Consumer Credit Risk

Consumerist redirects here. ... Le Mont-de-Piété (The Pawn Shop) or Chez Ma Tante by Jean Béraud Predatory lending is the practice of a lender deceptively convincing borrowers to agree to unfair and abusive loan terms, or systematically violating those terms in ways that make it difficult for the borrower to... The history of the United States national debt, relative to gross domestic product, since 1900. ... Consumer Credit Risk (AKA Retail Credit Risk) is the risk of loss due to a customers non re-payment (default) on a consumer credit product, such as a mortgage, unsecured personal loan, credit card, overdraft etc. ...

External links

• U.S. consumer credit outstanding
• In depth reports on debt and borrowing in the United Kingdom