The purposes of this study are to investigate the determinants of household demand for credit and to test the effects of credit outstandings and credit repayments on consumption expenditures. To investigate the relationship between credit use and consumption expenditures, a theoretical consumption expenditure model including credit outstandings and credit repayments is developed. With 1991 Report of National Survey of Family Income and Expenditure, two empirical models are tested using OLS. The results show that household demand for credit is determined by household income, debt burden, household size, age and squared age of household head and ratio of home ownership. It is also found that credit outstandings affect consumption expenditures positively while credit repayments affect consumption expenditures negatively.