Considerations before asking for credit

What you can do at this level

• Kresiliencedaily-lifelarge-majority

  Understands the implications of a credit commitment on future disposable income

• Kresiliencedaily-lifelarge-majority

  Understands the Importance of assessing ability to repay before borrowing money

• Kresiliencelarge-majority

  Understands the impact of compound interest on credit

• Kresiliencelarge-majority

  Understands the importance of knowing how long the repayment period will be and whether it is fixed

• Kresiliencelarge-majority

  Understands that the total cost credit may be higher than what implied only by the interest rate

• Kresiliencedaily-lifelarge-majority

  Can differentiate between the use of credit to generate or increase future income or wealth and the use of credit for consumption

What you can do at this level

• Sresiliencedaily-lifelarge-majority

  Uses credit only when necessary and after considering the consequences

• Sresiliencedaily-lifelarge-majority

  Assesses the total cost of credit and the likelihood of being able to pay it back before making any decision to borrow money

• Sresiliencedaily-lifelarge-majority

  Makes decisions to borrow and manages any credit commitments within a budget

• Sresiliencedaily-lifelarge-majority

  Takes into account the cost of credit as well as the cost of the item when making a decision to buy an item on credit

• Sresiliencedaily-lifelarge-majority

  Takes into account the potential to generate or increase future income or wealth when deciding whether to borrow

What you can do at this level

• Aresiliencedaily-lifelarge-majority

  Motivated to consider the consequences of accessing credit before making a decision

• Aresiliencedaily-lifelarge-majority

  Motivated to seek alternatives to borrowing (such as saving, leasing, joint ownership, social support etc…)