Consumer Credit Debt

Consumer credit debts, such as credit cards, overdrafts, and car finance, are commonly used to borrow money for purchasing consumer goods like cars and clothing. They are meant to be a short-term solution for making payments. When managed responsibly, this type of credit allows consumers to spread out the costs of purchases while also building their credit score. However, if payments are missed, debt can quickly accumulate. For this type of debt, lenders may also impose interest and charges in line with the agreements you’ve made.