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Borrowing19 minMorrow+

Debt, credit and the true cost of borrowing

Borrowing moves spending from the future into the present, usually for a price. Understanding interest, repayment order and credit records helps you use credit cautiously and escape expensive balances faster.

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Debt is future income already committed, plus interest and fees.

A £2,000 balance at a high annual interest rate can take years to clear with minimum payments because much of each payment covers interest rather than reducing the balance.

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