Consumer debt refers to the money that individuals owe as a result of borrowing for personal use. This type of debt is often incurred through credit cards, auto loans, student loans or other types of personal loans. Consumer debt can be used to purchase goods and services, finance large purchases such as cars or homes, or cover expenses like education or medical bills. While consumer debt can provide individuals with access to funds they may not have otherwise had, it must be managed responsibly in order to avoid financial difficulties.