Credit refers to an agreement to buy goods or services with the express promise to pay for it later, with interest.

You may have lent someone something and had the unfortunate experience of the item being returned in a poor condition, late or never returned at all.

Not returning goods on time or returning them in a worn state, is similar to borrowing money and either not making the repayments on time or not paying the interest on time.

Watch this video to see why it is important to consider whether you can afford repayments in your budget, prior to taking credit. 

See the three basic principles of credit here