Consumer debt
Consumer debt The term consumer debt refers to past-due amounts, lent by a creditor to a consumer, where the individual has fallen behind with his regular payments and became a debtor. Such defaults are also known as individual debts and represent a monetary sum borrowed by a second party (consumer) from a first party (lender). Individual debt is a small fraction of the whole household debt section, along with mortgage defaults, and derives from consummation or usage, rather than from investment (like business debts).
Consumer debt services
Consumer debt services Consumer debt services are special debt recovery proceedings, provided by debt collectors and DCAs (Debt Collection Agencies). Such services aim to recover the default amount in full from the subject of debt on behalf of the creditor. A lender can perform debt collection process within his own company, but usually creditors prefer to use professional consumer default services provided by collection agencies. Such services are carried out only for consumer debts and individual debtors, and are directly connected with the individual debt collection process.