List and briefly discuss the five major reasons for borrowing money through a consumer loan.

1. Auto loans: The loan is secured with the auto, meaning that the vehicle serves as collateral for the loan and can be repossessed by the lender should the buyer fail to make payments. These loans generally have maturities ranging from 36 to 60 months.

2. Loans for other durable goods: Consumer loans can also be used to finance other kinds of costly durable goods, such as furniture, home appliances, TVs, home computers, recreational vehicles, and even small airplanes and mobile homes.

3. Education loans: These loans can be used to finance either undergraduate or graduate studies, and special government-subsidized loan programs are available to students and parents.

4. Personal loans: These loans are typically used for nondurable expenditures, such as an expensive European vacation or to cover temporary cash shortfalls. Many personal loans are unsecured.

5. Consolidation loans: This type of loan is used to straighten out an unhealthy credit situation. When consumers overuse credit cards, credit lines, or consumer loans and can no longer promptly service their debt, a consolidation loan may help control this deteriorating credit situation. By borrowing money from one source to pay off other forms of credit, borrowers can replace, say, five or six monthly payments that total $400 with one payment amounting to $250. Consolidation loans are usually expensive, and people who use them must be careful to stop using credit cards and other forms of credit until they repay the loans. Otherwise, they may end up right back where they started.