The credit cycle

Borrowing brings spending forward from the future. Watch what that does on the way up, and on the way back down.

For educational purposes only. Simplified illustrations for self-led learning: explore at your own pace, in any order, and use the numbers you choose. Nothing here is based on your circumstances, so it is not financial, investment or tax advice, and not a recommendation.

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What's inside

  • One person's spending is another person's income
  • Debts are fixed in size; incomes are not
  • The burden keeps rising after borrowing has stopped
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Not advice
Self-directed education only.

Everything on this site is general information to work through yourself. It is not financial, investment, insurance, tax or legal advice, and not a recommendation to buy, sell or hold any product. Calculators and interactives are illustrations based on the figures you enter, not forecasts or guarantees.

No recommendation is made before your circumstances, needs and eligibility are reviewed. Lukas Jocius is a licensed life & health insurance and segregated funds advisor with Affinity Financial Services Inc., in Ontario.

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