What Is Consumer Debt? Consumer debt consists of personal debts that are owed as a result of purchasing goods that are used for individual or household consumption. Credit card debt, student loans, auto loans, mortgages, and payday loans are all examples of consumer debt. These stand in contrast to other debts that are used for
What Is Consumer Discretionary? Consumer discretionary is a term that describes goods and services that consumers consider non-essential but desirable if their available income is sufficient to purchase them. Examples of consumer discretionary products and services can include durable goods, high-end apparel, entertainment, leisure activities, and automobiles. Companies that supply these types of goods and
What Is the Consumer Financial Protection Act? The Consumer Financial Protection Act of 2010 is an amendment to the National Bank Act designed to identify and explain the standards that apply to national banks. The Consumer Financial Protection Act aims to increase oversight and clarify the consumer finance laws governing financial transactions to protect consumers
What Is the Consumer Financial Protection Bureau (CFPB)? The Consumer Financial Protection Bureau (CFPB) is a regulatory agency charged with overseeing financial products and services that are offered to consumers. The CFPB is divided into several units—research, community affairs, consumer complaints, the Office of Fair Lending, and the Office of Financial Opportunity. These units work
What Are Consumer Goods? Consumer goods are products bought for consumption by the average consumer. Also called final goods, consumer goods are the end result of production and manufacturing. Clothing, food products, and dishwashers are examples of common consumer goods. The Consumer Product Safety Act of 1972 regulates the sale of most common consumer goods
What Is Consumer Interest? Consumer interest is interest charged on consumer credit accounts such as personal loans, automobile loans and credit card debt. Unlike mortgage interest and some interest charged on student loans, consumer interest from personal loans, credit cards, and other debt is a nondeductible tax expense. Key Takeaways Consumer interest is interest charged on
What Is Consumerism? Consumerism is the idea that increasing the consumption of goods and services purchased in the market is always a desirable goal, and that a person’s well-being and happiness depend fundamentally on obtaining consumer goods and material possessions. In the economics sense, consumerism is related to the predominantly Keynesian idea that consumer spending
What Is Consumer Liability? Consumer liability places accountability on consumers to prevent negligence in their consumption activities. Policies that determine the level of consumer liability are written into companies’ contracts and are a way of protecting them from any liability as a result of potential consumer negligence. Key Takeaways Consumer liabilities are contractual obligations that
What Is the Consumer Price Index (CPI)? The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers. The Bureau of Labor Statistics (BLS) calculates the CPI as a weighted average of prices for a basket of goods and services representative of aggregate U.S. consumer spending. The CPI is one of
What Is the Consumer Product Safety Commission (CPSC)? Consumer Product Safety Commission (CPSC) is a U.S. government agency that protects the American public from products that may present safety hazards. This independent regulatory body focuses on consumer items that pose an unreasonable risk of fire, chemical exposure, electrical malfunction, or mechanical failure. Products that expose
