Raeanna
Paying by credit card was normal to Raeanna. It didn’t feel like spending money.
She was shocked to discover how much that card was really costing her. The total interest could end up being nearly as much as her original debt.
Money paid in return for the use of money. If the bank is using your money (in a savings account) they pay you interest. If you are using the bank's money (via a loan), you pay the bank money.
Debt is what you owe - it comes in many forms, including mortgages, personal loans, credit card balances, hire purchase agreements, loans from family.
| Raeanna is getting sorted... | You can too... | |
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| Credit card
Sorted showed Raeanna how much her card was really costing her. |
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| Retirement savings
The amount she was paying in interest could be going into a retirement savings scheme like KiwiSaver. |
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| Debt
Raeanna’s focus is now on paying off her debt as quickly as possible. |
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| Goals
In future, Raeanna will try to save for her goals rather than going into debt. |
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Other Sorted Journeys
