What Is Primary Consumer Debt?

Primary consumer debt is a financial term for the type of debt consumers accrue by purchasing basic items for daily life. It describes the costs to individual consumers, not businesses or governments.

Common Types of Debt

The most common types of primary consumer debt are in the form of credit card debt and personal loans. These are often at a higher interest rate than a long-term loan, such as a mortgage.

Fun Fact

With the total amount of consumer debt in the United States standing at approximately $2.5 trillion, the average debt for each person living in the U.S. comes to about $8,100.

Common Misconception

Interest payments of primary consumer debt are not deductible, the way they are on mortgages.

References

• Investor Words: Consumer Debt
• Money-Zine: Consumer Debt Statistics