World 8 · Foundations

Debt & borrowing

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What borrowing really costs, and how to get out.

By the end of this world

You will understand how interest and credit work, recognise debt traps, and know the main ways people repay debt.

What debt is — and the limits of “good” vs “bad” — Borrowing moves future income into the present. Labels like good and bad debt only go so far. (6 min · Foundation)
Interest: simple, compound and APR — Interest is the price of borrowing. How it is calculated decides how fast a debt grows. (8 min · Foundation)
Credit and credit cards — What credit is, how lenders decide, and why a credit card is both a tool and a trap. (7 min · Foundation)
Loans, installments, secured and unsecured — The common shapes of borrowing, and what a lender can take if repayments stop. (7 min · Foundation)

Minimum payments and debt traps — Paying the minimum keeps you current and keeps you in debt — sometimes for years. (6 min · Foundation)
Student debt and business debt — Borrowing to learn and borrowing to build — the promises behind them and the risks inside them. (7 min · Practical)
Debt-to-income: how much is too much? — Comparing what you owe each month to what you earn is how lenders — and you — can see the strain. (6 min · Practical)

Repayment strategies and refinancing — Snowball, avalanche and the basic idea of refinancing — and how to choose. (8 min · Practical)
When borrowing makes sense — and when it becomes dangerous — A few questions that separate a useful loan from one that will quietly take over. (7 min · Practical)
The psychology of debt — How debt feels, how it affects decisions, and how it grows alongside lifestyle. (6 min · Practical)