Question

"Apex, Matanuska-Susitna Civics; 3.1.3 Journal

As of January 2011, nonmortgage consumer debt had increased for the fourth straight month. At the same time, credit card debt fell to a six-year low point. Excluding mortgages, how can it be that consumer debt is rising while credit card debt is falling?

Answer 1

Consumer debt can rise while credit card debt falls because consumer debt includes all types of debt except mortgages.

Step-by-step explanation:

Consumer debt can rise while credit card debt falls because consumer debt includes all types of debt except mortgages. This means that besides credit card debt, it also includes other forms of debt such as student loans, auto loans, and personal loans. So, while credit card debt may be decreasing, other types of debt could be increasing, resulting in an overall increase in consumer debt.