Consumer Credit

Consumer credit means debt that individuals use to buy goods and services. In simple terms, it is borrowing by consumers through credit cards, auto loans, personal loans, and similar debt. Consumer credit is important because it can support spending when people borrow, but rising debt burdens can create financial pressure. Investors watch consumer credit to understand household strength and spending capacity. For example, if credit card balances rise quickly, consumer credit is increasing. Consumer credit is not the same as income. It is borrowed money that must be repaid, often with interest.