Many lenders use the 28/36 rule in evaluating mortgage applications- If your mortgage payment itself is 28% of your gross income, that means that the remainder of your monthly debt must be ________% or less.

What Is Consumer Debt?

Consumer debt consists of personal debts that are owed as a result of purchasing goods that are used for individual or household consumption. Credit card debt, student loans, auto loans, mortgages, and payday loans are all examples of consumer debt.