Personal debt refers to any outstanding debt an individual carries, and is typically unsecured. In general, it represents debt that is the result of consumption, as opposed to investment.
The most common type of personal debt is credit card debt. Many Americans find themselves charging their purchases on credit cards to avoid immediate repayment. However, as with any type of debt, credit card debt can accumulate very rapidly, and can have long-term financial consequences. Personal debt often comes at higher interest rates than other forms of secured debt, such as mortgages, and can have negative affects on your credit report.
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