Research Paper (postgraduate) from the year 2016 in the subject Economics - Case Scenarios, grade: 90%, Birzeit University (Faculty of Business and Economics), course: MBA ( Master of Business Administration), language: English, abstract: Background: consumption loans negatively affect micro and macro living standards. Methods: two samples were randomly selected, one for loan takers and the other for non-loan takers (n=65) each. ELSI short form is used to measure living standards for each sample in order to compare them. Other variables are taken into consideration. Results: loan takers living standards are less than non-loan takers living standards. Consumptions loans are negatively associated with living standards in Palestine. Conclusion: Consumption loans negatively affect living standards in Palestine; taking loans without suitable planning for monthly payments might harm loan takers by adding financial burden to them, banks and PMA should review loan payment-to-income ratio to the interest of clients.