Jun pays nothing for six months, and the pile climbs.
The big ideaUnpaid extra joins the pile and grows too. Paying more than the extra turns it back.
How it works
In the made-up town of Reed Bend, Jun owed a lender thirty coins, and the lender added one extra coin for every full ten owed. Lots of people owe, which is very ordinary.
One month a leaky roof took everything Jun had, so nothing was paid. The extra joined the pile, so next month there was extra on the extra. That is why it is called a spiral.
A spiral is no failing. It is just a pile that grows when little is paid.
Ro said to talk to the lender early and make a plan. Paying at least the month's extra stops the pile growing, and paying more turns it back.
What is owed after six months, four ways to pay.Feeding the spiral and stopping it.
Example 1: Pay nothing for one month
Jun owes 30, which has 3 full tens.
The lender adds 3 extra coins.
30 + 3 = 33 coins are owed.
Example 2: Pay nothing again
33 has 3 full tens, so 3 more extra coins join it.
33 + 3 = 36 coins are owed.
The next months go 39, 42 and 46.
After six months the pile is 50, which is 20 coins bigger.
Example 3: Pay just the extra
On 30 owed, the extra is 3.
Jun pays 3 a month, so 30 + 3 − 3 = 30.
The pile holds at 30. It stops growing, but it does not shrink.
Example 4: Pay a bit more
Jun pays 8 a month.
After month one: 30 + 3 − 8 = 25.
Then the pile goes 19, 12 and 5, and then none.
It is gone in five months.
Example 5: A second loan
A second lender lent Jun 3 coins to cover the first lender's extra.
It seemed to help, but it only moved the pile around.
Now two lenders add extra coins, so the first pile still grows and a second pile has started.
Words to know
spiral
A pile that turns faster as it grows, because the extra joins the pile.
lender
The one who lends coins and adds the extra.
extra
Coins the lender adds for what is still owed.
plan
A set amount each month, on a calendar both can see.
pile
The coins that are owed.
Watch out
A spiral is no failing. Many families have a month like Jun's.
Borrowing to pay borrowing only moves the pile around.
Hoping it goes away does not shrink a pile. The extra keeps coming.
Talking to the lender early can lead to a plan: a set amount each month, on a calendar both can see.
Try it
Jun owes 33 and pays nothing. 33 has 3 full tens. What does Jun owe next month?
Jun owes 30 and pays 3 a month. What happens to the pile?
Why did Jun's second loan not fix the spiral?
After six months of paying nothing, how many coins does Jun owe?
Answers: 1. 36 · 2. It holds at 30 · 3. It moved the pile and started a second extra · 4. 50
Try at homeWith a grown-up, draw a pretend pile of thirty coins for six months. First pay nothing each month, then pay eight, and compare.
For grown-upsSay it calmly, as the episode does: owing is very ordinary and a growing pile is not a failing. The way back is to talk to the lender early and to pay more than the month's extra. This is a made-up town, not advice about any real debt.
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