Credit is the ability to borrow money.
Without credit, many people would not be able to purchase an automobile, unless they had the entire cost of the auto in cash. Credit debt is the unpaid balance on auto loans, credit cards, student loans and any other non-mortgage debt. Over that same 25 year period median U.S. family income increased only 5 percent after accounting for inflation. This increase has far exceeded the very modest increase in real median family income. Excess borrowing creates high monthly payments, which can strain even a well-planned budget.