Credit and debt

Credit is money you borrow from a financial institution like a bank or credit union, to spend the way you want.

However, credit isn't your personal money tree growing in the backyard. Any credit you use is a debt that must be paid back to the credit provider - usually with extra costs on top of the amount you borrowed such as interest, fees and charges.

Video: Credit hangover - MoneySmart Rookie

Credit hangover video.

Staying on top of your finances is important, it is easy to get into debt by borrowing money on your credit card.  Watch this video to learn how to avoid financial rookie errors with credit.

Transcript: Credit hangover - MoneySmart Rookie

Last updated: 26 Jul 2016