Consumer debt

Hello there!

Consumer debt is like when you owe someone money for buying something for yourself or for your home. Let's say you really want a new toy and your mom buys it for you but she doesn't have the money to pay for it right away. She might put the cost of the toy on a credit card and then owe the credit card company that money later.

That's kind of like consumer debt. But, it's not just toys. People use consumer debt to pay for all sorts of things like groceries, clothes, car payments, and even vacations.

But, remember that when you put something on a credit card or take out a loan, you have to pay that money back with extra money called interest. It's like a fee for borrowing the money. The longer you take to pay back the debt, the more money you have to pay in interest.

So, it's important to be careful with consumer debt and make sure you only borrow what you can afford to pay back. It's like when you borrow a toy from a friend, you have to make sure you take care of it and give it back to them when you're done playing with it.

I hope that helps you understand consumer debt a little bit better!