Debt can affect consumption in a few ways. First, it can increase the amount of money that consumers have to spend each month, which can reduce their discretionary income and lead to lower levels of consumption.
Second, debt can limit a consumer's ability to borrow money in the future, which could also lead to lower levels of consumption. And finally, debt can make it more difficult for businesses to borrow money, which could lead to a decrease in business investment and, ultimately, a decline in economic growth.