Consumer debt consists of personal debts for goods purchased for personal or household consumption—as opposed to debts incurred for the operation of a business. Common examples of consumer debt include (1) credit card debt; (2) student loans; (3) home mortgage loans; (4) car or auto loans; (5) payday loans; (6) medical debts; and (7) unpaid utility and telephone bills.

In Illinois, consumer debt is regulated by both state statutes and federal law. The Illinois Collection Agency Act governs the practices of collection agencies within the state, requiring them to be licensed and to adhere to certain standards when collecting debts. The Illinois Consumer Fraud and Deceptive Business Practices Act protects consumers from unfair or deceptive acts, including in the collection of debts. Credit card debt, student loans, and other types of consumer debt are also subject to the federal Fair Debt Collection Practices Act (FDCPA), which sets national standards for the collection of consumer debts, prohibiting abusive, unfair, or deceptive practices. For home mortgage loans, the Illinois Residential Mortgage License Act of 1987 requires licensing and regulation of mortgage professionals and enforces certain consumer protections. Car loans are regulated under the Illinois Motor Vehicle Retail Installment Sales Act, which sets forth the financing and disclosure requirements for auto loans. Payday loans in Illinois are regulated by the Payday Loan Reform Act, which imposes limits on loan terms and fees to protect consumers from excessive interest rates and debt traps. Medical debts and unpaid utility and telephone bills are also subject to state and federal debt collection laws. Consumers facing issues with debt collection may seek the assistance of an attorney or contact the Illinois Attorney General's Consumer Protection Division for help.