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The difference between credit and debt comes down to potential vs. actual borrowing:

- Credit is the ability to borrow money or access goods/services with the promise of paying later. It represents financial trust given to you by lenders. For example, a credit card with a $5,000 limit means you have access to $5,000 in credit, but you haven’t necessarily used it yet.

- Debt is the actual amount of money you owe. Once you use your credit (e.g., by spending $1,000 on your credit card), that amount becomes debt until you repay it.

In short:
- Credit = Available borrowing power
- Debt = Money you’ve actually borrowed and must repay