Sky News host Rita Panahi has mocked a woman who did not understand she was racking up debt while spending money on her credit card.

The 20-year-old appeared on a podcast with Caleb Hammer where she told a story of how she discovered the difference between credit debt and credit limit.

“Me and my boyfriend, me and my friends would go out, and I would be like ‘I will pay for everybody, I got it, I will spend the money, it’s just a credit card’,” the woman said on the podcast shared to TikTok.

“So I would pay and pay and pay and I called my mum one day and wanted her to be proud of me, so I was just like, ‘Hey, I’ve got $4,000 credit on my credit card’.

“She was like ‘credit limit or credit debt?’ I was like ‘what’s debt?”