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 North Carolina, consumer debt is regulated by both state statutes 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 follows the federal Fair Debt Collection Practices Act (FDCPA) which sets standards for the treatment of debtors by debt collectors. For example, debt collectors are prohibited from using abusive or deceptive practices when collecting consumer debts. North Carolina also has its own set of laws that provide additional protections. The North Carolina Debt Collection Act (NCDCA) mirrors and sometimes expands upon the protections offered by the FDCPA. Payday lending is illegal in North Carolina, making payday loans void and unenforceable in the state. The state also imposes a statute of limitations on how long a creditor has to sue for unpaid debt. For most consumer debts, this period is three years from the date of the last payment or acknowledgment of the debt. Mortgage and car loan debts have specific regulations and are secured by the property; failure to pay can result in foreclosure or repossession. It's important for consumers to understand their rights and obligations under these laws and to seek advice from an attorney if they face debt collection issues.