Use credit to build your future, not to rent your past.
Lesson 1 of 4
When you borrow, you pay interest, a yearly percentage of what you owe. Think of it as rent on someone else's money.
The rate changes everything. A $10,000 car loan at 6% over five years costs about $1,600 in interest. At 15%, the same loan costs about $4,300.
Compare paying only the minimum with paying a fixed amount each month.
Paying the minimum
11.6 years
to pay off
$2,600
paid in interest
Paying $150 a month
16 months
to pay off
$315
paid in interest
Minimum payment modeled as 1% of the balance plus interest, at least $25. Card terms vary.
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For learning only. Kuleana Finance explains how money works. It does not tell anyone what to buy or sell.