Definition of Consumer interest:
Non tax-deductible interest incurred on credit card debt and personal loans.
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.
The Board of Governors of the Federal Reserve tracks consumer debt as revolving debt. Consumer debt consists of debts owed as a result of purchasing goods which are consumable and do not appreciate. The most common instances of consumer debt include credit card debt, payday loans, and other kinds of consumer financing. There has been a steady growth of revolving debt since the introduction of credit cards. The Federal Reserve found consumer debt in early 2018 to be over $3 trillion, with an increase of 2.5% in April. During times of higher interest rates, excessive consumer debt can limit further consumer spending.
How to use Consumer interest in a sentence?
- It is also interest charged on certain types of interest on income tax returns.
- Payment of consumer debt with a home equity line of credit (HELOC) is no longer tax deductible.
- Consumer interest is interest charged on consumer-focused loans, such as personal loans, automobile loans, and credit card debt.
Meaning of Consumer interest & Consumer interest Definition