Which best describes consumer credit?

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The description that best captures consumer credit is when it refers to debt used by consumers for non-mortgage expenditures. Consumer credit typically includes various forms of borrowing that individuals utilize to finance everyday purchases and expenses. This can range from credit cards to personal loans or financing options for goods and services.

This option effectively emphasizes that consumer credit is aimed at individuals rather than businesses and does not pertain to real estate transactions. Since it is focused on non-mortgage expenditures, it highlights the broader scope of consumer credit and its role in facilitating personal spending and managing cash flow. Such debt often involves borrowing for products like cars, electronics, and even healthcare expenses, illustrating its significance in the larger landscape of personal finance.

In contrast, the other options are focused mainly on business-related financing or specific types of loans associated with real estate. This distinction reinforces the understanding that consumer credit plays a unique and vital role in individual financial management separate from business endeavors or property acquisition.

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