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 Massachusetts, consumer debt is regulated by both state and federal laws. Credit card debt, student loans, home mortgages, auto loans, payday loans, medical debts, and unpaid utility and telephone bills are all considered consumer debts when they are for personal or household use. The state has specific statutes that protect consumers from unfair and deceptive practices, such as the Massachusetts Consumer Protection Act (Chapter 93A). Additionally, the Division of Banks oversees the licensing and regulation of certain lenders, including mortgage lenders and payday loan operators. Payday loans are subject to regulation in Massachusetts, and the state has stringent laws that limit the activities of payday lenders. For example, the annual interest rate on small loans cannot exceed 23% and administrative fees are capped. Debt collection in Massachusetts is governed by the Fair Debt Collection Practices Act (FDCPA), which is a federal law that sets the standards for how debt collectors can operate, and the Massachusetts Attorney General's debt collection regulations that provide additional protections. These laws prohibit abusive practices by debt collectors and give consumers the right to dispute and validate debt information. For issues like mortgage foreclosures, Massachusetts has specific procedures and consumer protections in place, including the right to a loan modification under certain circumstances. Consumers facing issues with debt in Massachusetts may seek the advice of an attorney to understand their rights and obligations under the law.