What classification of collateral is primarily used for personal or household purposes?

The classification of collateral primarily used for personal or household purposes is consumer goods. Consumer goods are defined under the UCC (Uniform Commercial Code) as tangible, movable personal property that is bought or used primarily for personal, family, or household purposes. This includes items like furniture, appliances, and electronics that are not intended for business use.

In contrast, equipment typically refers to goods used in a business setting that are not considered inventory, such as machinery and tools. Farm products, on the other hand, relate specifically to agricultural goods like crops and livestock, while inventory pertains to goods held for sale in the ordinary course of business. Understanding these distinctions is crucial in secured transactions, as the classification affects the rights of the secured party and the debtor's obligations.