Consumer Credit Definition

Consumer credit is credit extended to individuals with the general intent that it be used to purchase personal property such as food, couches, televisions, DVDs, gasoline, etc. Most consumer credit is extended through credit card accounts and virtually every modern merchant accepts most major credit cards for payment. Consumer credit, in the aggregate, is a driving factor behind most modern economies and, if managed wisely, is an excellent financial tool. Unfortunately, it is all too easy to mistake consumer credit availability with "free money", which leads to personal financial distress and, often, bankruptcy.