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.
Check out the MoneySmart Rookie website for more info on credit and debt. If you are in debt the best thing to do is to call, or make an appointment with, a financial counsellor. Financial counsellors offer free advice to help you manage your money, they will help you talk to whoever you owe money and work out the best solution for everyone. Check out Financial Counselling Australia to find a counsellor near you, or call 1800 007 007 to speak to one on the phone.