•
cREDIT
the ability to
borrow money.
DEBT
the amount of
money you owe.
When you have "good credit" or when you are known for paying your
bills on time and not borrowing money without paying back, this makes
life much easier. As an adult, you may want to purchase a home, piece
of land or even a car. Lenders would look at your financial record
before they decide to extend credit to you.
For example, if Bill goes into a furniture store and takes home a living
room suite on hire purchase terms, but does not pay his monthly instal–
ments on time, not only may the store decide to take back or repossess
the suite, but it may also decide to blacklist Bill and let other companies
know about Bill's bad habits. Bad credit can haunt you for the rest of
your life.
(; '
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JlJake a
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er ov-er
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ents.
