Consumer debt refers to the money that individuals borrow to purchase goods and services for personal use. This type of debt can include credit card balances, personal loans, auto loans, and student loans. It is typically unsecured, meaning it is not backed by collateral, which can lead to higher interest rates. Managing consumer debt is important for financial health, as excessive debt can lead to stress and financial instability. Individuals are encouraged to create budgets and prioritize paying off high-interest debts first. Understanding the implications of consumer debt can help people make informed financial decisions and avoid potential pitfalls.