FinLit 101 - Types of Debt and Credit

When we make purchases, sometimes we use our own money, but sometimes we use a payment method where we're using money loaned to us - on the promise we pay it back. Whether it be a credit card purchase, a mortgage, taking out a loan to pay for something, or even an arrangement where we make payments in instalments, it's important to understand the differences - and the costs - associated with each type of credit.