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 New Jersey, 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 New Jersey Consumer Fraud Act provides protections against deceptive practices in the sale of goods and services, which can include some forms of consumer debt. Additionally, the New Jersey Fair Credit Reporting Act mirrors the federal Fair Credit Reporting Act, ensuring fair and accurate credit reporting. Payday lending is prohibited in New Jersey, which means that payday loans are typically not available to consumers in the state. The state also has laws that regulate debt collection practices, including the New Jersey Fair Debt Collection Practices Act, which prohibits abusive, deceptive, and unfair debt collection practices. On the federal level, the Consumer Financial Protection Bureau (CFPB) enforces regulations that protect consumers from unfair, deceptive, or abusive practices by lenders and debt collectors. For mortgages, the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) provide federal protections, including clear disclosure of loan terms and good faith estimates of closing costs.