KNOW THE RULES - All about credit

Credit is a powerful tool

Credit simply means “borrowed money”, and it comes in many forms - from credit cards and personal loans through to home loans. Credit can be enormously useful, letting us buy the things we want in life sooner, helping us manage our cash flow, and it can be especially useful in emergencies.

But using credit also brings significant responsibility. It should be used wisely because using credit to spend beyond your means can lead to unmanageable debt and serious financial trouble. The more you know about credit – how it works and how to use it effectively, the easier it is to use this powerful tool sensibly.

First and foremost, remember that credit is not the same as cash in your pocket. Not only does it have to be repaid, it also comes at the price of interest.