Is my car loan considered consumer debt?

I have a car loan. My friend and I were chatting about finances the other day, and he told me that a car loan is consumer debt. He said that it's good for the economy, but to be frank, I don’t know what he was talking about. Is my car loan consumer debt?

Answer
Kudos to you for wanting to learn more about your economic situation! A car loan is most certainly consumer debt as long as you’re using the car for personal driving, rather than for a business.
A car loan is also great for the economy. Consumer spending accounts for 70% of all spending in the United States, which stimulates the economy in turn. Furthermore, consumer debt is good for your credit score, provided you continue to make your payments on time.
Car insurance is another way to inject money into the economy, and can be a good way to save you money while you pay off your loan. To do this easily, use the Jerry app! We’ll get you customized quotes from top insurers so that all you need to do is pick the plan that works best for you. And once you pick one, we’ll even help you switch!
Hope that helps—and kudos again!
Eric Schad
Answered on Nov 22, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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