What you borrow
Loans are very convenient. But they can also be expensive. While you're studying try to avoid high interest debt such as credit cards and some hire purchase deals.
Avoid high-interest debt
Credit cards and unsecured personal loans can be very expensive so avoiding that kind of borrowing is a good habit to develop.
When you borrow to buy something, remember to add the interest cost to the price tag. If you knew those $120 jeans would actually end up costing you $150, would you still want them?
Compare the interest rates you pay with different types of 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.
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