Tag: consumer credit

The average American carries $104,215 in debt, primarily from mortgages, followed by auto loans and then credit cards. Consumer debt falls into two categories: revolving (like credit cards) and installment (like mortgages and student loans). High interest rates, easy access to credit, economic factors, and spending habits all contribute to debt accumulation. Strategies to reduce debt include cutting expenses, budgeting, consolidating loans, and increasing income.