Credit & Debt Basics
📋 What it is
Credit is borrowed money you repay, usually with interest; debt is money you owe.
🗣️ Coach says
Credit lets you buy now and pay later — but you usually pay back MORE (interest). Debt is what you owe. Used carefully credit is a tool; ignored, the interest piles up. Understanding the cost is key.
🧠 Memory hook
Credit = borrow now, repay later (with interest). The interest is the price of borrowing.
😂 Giggle
Why did the coin go to school?
To get more cents (sense)!
😲 Whoa!
Paying only the "minimum" on a credit card can turn a small purchase into years of payments — because interest keeps adding up.
✅ Quick check: You borrow $100 and must repay it with 10% interest. How much do you repay in total?
Say your answer out loud first — then reveal.
$110 — the $100 plus $10 interest.
Repayment is the amount borrowed plus the interest charged.
🧪 Try it! (2 minutes)
Compare buying a $50 item now with cash vs on credit at 20% interest. What's the extra cost?