🎯 Goal: Know consumer loans/"0%" installments may hide fees; rolling debt becomes a trap.
Consumer loans are easy but high-cost. "0% installments" may hide fees. Borrowing to repay old debt (rolling) balloons it — a debt trap.
Let’s explore
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Borrowing to repay old debt (rolling) → debt on debt, hard to escape.
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"0% installments" often carry a conversion/service fee — read carefully.
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Only borrow with a clear, affordable repayment plan.
Practice activity
⚠️ Why is "borrow from one card to pay another" a danger sign?
Worked example: You use card B to pay card A. The debt does not shrink and adds card B’s cash-advance fee and interest → it grows. This is a debt trap; stop borrowing and plan to clear it.
Quick quiz
1. "Rolling debt" (new loan to repay old) usually?
→ Balloons debt, hard to escape
2. "0% installments" may?
→ Hide conversion/service fees
3. Only borrow when?
→ You have an affordable repayment plan
4. Consumer loans usually have interest/fees that are?
→ High
5. A sign of an approaching debt trap?
→ Constantly borrowing to repay
🎯 Real-life mission
Calculate the true total of a “0%” installment plan (including hidden fees).