# MODULE 2 FIRST STEPS TO FINANCIAL INDEPENDENCE

Size: px
Start display at page:

## Transcription

2 MODULE 2 FIRST STEPS TO FINANCIAL INDEPENDENCE NOTES: 5. Have student teams complete the Good Debt vs. Bad Debt sheet. When teams have completed the sheet, have them present their skits for the class. Have students put the sheet in their PF Portfolio. 6. Ask students what happens when people live beyond their means or borrow to maintain their lifestyle. Discuss with students that more and more adults and young people are getting into serious debt, especially credit card debt. 7. Discuss with students what happens when debt such as credit card bills, home equity loans, home mortgages, car payments, and student loans are not paid on time or not paid at all. Some examples are late fees, foreclosure on your house, repossessed cars, and increased debt from interest charges. Discuss how compound interest charges can quickly cause debt to get out of control. 8. Use the FIT Tool: Debt Reducer Calculator to show how expensive debt can be. Since , the minimum payment on a credit card must be 4% of the balance. Make sure students understand that the FIT Tool scenarios only reflect situations when there are no additional charges made to the card. 9. Provide the following scenario. Anne has a credit card with a balance of \$1,200. The interest rate is 9.89%. Her fixed monthly payment is \$48. When will she be debt free? How much will she pay in interest? Amount of debt: \$1,200 Interest rate: 9.89% Fixed monthly payment: \$48 Total interest paid: \$ Debt free: 2 years and 5 months 10. After each example, discuss the length of time and the amount of interest paid. 11. Present the follow scenario: Arman has a credit card with a balance of \$15,750. The interest rate is 19.89%. His fixed monthly payment is \$630. When will he be debt free? How much will he pay in interest? Amount of debt: \$15,750 Interest rate: 19.89% Fixed monthly payment: \$630 Total interest paid: \$4,757 Debt free: 2 years and 9 months Page 2.33

4 MODULE 2 FIRST STEPS TO FINANCIAL INDEPENDENCE NOTES: are meaningful to borrowers and lenders. A person may not get a loan based on a lower credit score. 18. Optional: Have a representative from a banking institution come in and present information on debt, credit cards, and easy access credit. FIT WORK Optional: FIT Work 2.4 sheet (page 2.41). Students reflect on easy access credit and making wise financial decisions. The answer key is on page Remind students they are responsible for keeping all FIT Work sheets in the PF Portfolio. ASSESSMENT Observe how teams work together look for collaboration, leadership, communication, and teamwork qualities and skills. Observe and listen to team presentations/lessons look for mastery of content. Review Easy Access Credit notes for accuracy. Review FIT Work 2.4 sheet for mastery of content and completion. PFP Good Debt vs. Bad Debt sheet (page 2.36) Easy Access Credit notes FIT Work 2.4 sheet (page 2.41) Page 2.35

8 Easy Access Credit Like payday loans, car title loans are marketed as small emergency loans, but these loans put, at high risk, an asset essential to the well-being of working families their car. Typical car title loans have annual interest rates of 300% and the loan amount is no higher than 30 to 50 percent of what the lender says is the value of the car. Like payday loans, car title loans are usually made without regard to a person s ability to repay. Car title loans are set up to be repaid as a single large payment after a very short term, usually a month. The person taking the loan has to give the lender the title to his/her car or a set of keys. If the loan is not repaid in one month or another round of fees paid to extend the loan, the lender will take the car, sell it, and possibly keep the full sale price. What is abusive about car title loans? Rollovers: Often, people cannot pay the full amount owed on the due date, so they must extend or roll over the loan repeatedly. This creates a situation where many consumers pay fees higher than the amount originally borrowed. Losing the car and equity : If a person cannot afford to pay fees every month to rollover the loan, the lender may take the car without advance notice. This can lead to further financial problems, if the person is dependent on the car to get to work. It can also lead to health and other problems as well, if there is no car to get to the doctor s office or to get children to school. When the lender takes the car, he/she will sell the car and may keep the full value, not just the amount owed. Extremely high interest rates: The interest rates charged are often very high, sometimes 300% or more. Disguised loans: In states where car title loans are illegal, title lenders hide the true nature of their products to exploit loopholes in existing laws for example, pretending that their abusive loans are sales and leasebacks or pawns when that is not the case. Internet loans: Using the Internet to borrow money leads to increased risk. It s possible that car title lenders will not keep private information confidential. Also, they might not be physically located in the same state and often aren t even present in the United States. They may lend over the Internet in order to avoid the protections of state laws and to make it virtually impossible for anyone or any government agency to find them. Are car title loans legal? High-priced title loans are illegal in about half of the states. However, the car title lending industry has grown tremendously in states that have failed to take adequate steps to protect consumers or have passed industry-friendly laws. Rent-to-Own For many consumers with poor or non-existent credit histories, owning big ticket items such as furniture, electronics, or cars can seem unattainable. Qualified buyers can often get low-interest loans from banks to finance these purchases, but some can only qualify to pay high-interest rental prices every month. Under traditional rental agreements, there is no sense of ownership. If the renter cannot make the rental payment, the item is repossessed by the owner. Page 2.39

9 Easy Access Credit A rent-to-own arrangement starts off as a traditional rental agreement, but the two parties agree to transfer ownership at the end of a specified period of time. The seller benefits from the high monthly interest rates, and the buyer benefits from the less restrictive credit qualifications (only a few references and proof of steady employment is needed). A \$600 television set, for example, might end up costing the buyer nearly \$1,500 in total payments. Since these monthly rent-to-own payments are usually smaller than equivalent bank loans, the buyer doesn t always feel the pinch. The seller can afford to take an occasional loss as long as those who remain in the rent-to-own program continue until the end. Repossessed items are sometimes sold again under new rent-to-own arrangements. Despite the high interest rates and risk, these customers will eventually assume ownership rights to their purchases. The alternative might be to buy inferior used goods with available cash, or enter into other high interest loans with lending institutions. Rent to own arrangements are legal, but consumers should be aware of all the hidden costs and conditions prior to entering into the agreement. Pawn Shops A pawn shop is a lot like a dozen garage sales and a flea market all rolled into one. Pawn shops provide people with a fast, easy way to borrow small amounts of money. There are three transactions that happen in any pawn shop: People borrow money by putting up something they own as collateral. People sell used merchandise. People buy new and used merchandise. The basic idea behind a pawn shop is to loan people money. This is how it works: Bring in something of value and give it to the pawnbroker as collateral for a loan (this act is called pawning). The pawnbroker loans money against that collateral. When the loan plus the interest is repaid, the collateral is given back. If the loan is not repaid, the pawnbroker keeps the collateral. If an item is pawned for a loan, within a certain period of time, the pawner of an item may purchase it back for the amount of the loan plus some agreed upon amount for interest. The amount of time, and rate of interest, is governed by state law and the pawnbroker s policies. If the loan is not paid (or extended) within the time period, the customer forfeits title of the item to the pawnbroker. The pawnbroker does not report the defaulted loan on the customer s credit report, since the pawnbroker has title to and physical possession of the item. The pawnbroker may recoup the loan value through outright sale of the item at his pawn shop. The pawnbroker should only accept items that are not stolen property. Laws to protect both the pawnbroker and the community-at-large exist in some areas. These laws often require the pawnbroker to establish positive identification of the seller through photo ID (i.e., drivers license or government-issued ID), as well as a holding period placed on an item purchased by a pawnbroker to allow for local law enforcement authorities to track down stolen items. Page 2.40

10 FIT Work 2.4 Name Date Desmond is anxious to purchase some sneakers that are on sale this week. Unfortunately, he does not have the money to pay for them. Rather than wait until he saves enough, he decides to take out a title loan using his car as collateral. Was this a good decision? Why or why not? What happens if he is unable to pay back the loan? What advice would you give Desmond? Page 2.41

11 FIT Work 2.4 Name Date Desmond is anxious to purchase some sneakers that are on sale this week. Unfortunately, he does not have the money to pay for them. Rather than wait until he saves enough, he decides to take out a title loan using his car as collateral. Was this a good decision? Why or why not? No. Car title loans have extremely high interest rates (often over 300%). Desmond will be further in debt than before because he will have to pay back the loan plus the amount of interest. This means that his sneakers actually cost a lot more than the sale price because of the interest he had to pay for the loan. What happens if he is unable to pay back the loan? Two things could happen. Desmond can extend the loan at an even higher interest rate or the title loan company will take away his car. What advice would you give Desmond? If he really wants that certain pair of sneakers, he can wait until he has enough money saved to pay for them. They may not be on sale by then but at least he will not get himself further into debt with the car title loan. He can also buy another pair now that he can afford. Page 2.42

### MODULE 2 FIRST STEPS TO FINANCIAL INDEPENDENCE

MODULE 2 FIRST STEPS TO FINANCIAL INDEPENDENCE Debt & Easy Access Credit This lesson teaches students about good and bad debt, how to reduce debt, and easy access credit. The FIT Work has students reflecting

### Financial Literacy. Credit basics

Literacy Credit basics 2 Contents HANDOUT 6-1 Types of credit Type of credit Lender Uses Conditions Revolving credit Credit Cards (secured and unsecured NOT prepaid) To make purchases, pay bills, make

### Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money.

TEACHER GUIDE 7.2 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. It Is In Your Interest Priority Academic Student Skills

### Remember the Interest

STUDENT MODULE 7.1 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. Remember the Interest Mom, it is not fair. If Bill can

### K.4 Using Credit Wisely After Bankruptcy

Appx. K.4 K.4 Using Credit Wisely After Bankruptcy Beware of Credit Offers Aimed at Recent Bankruptcy Filers Disguised Reaffirmation Agreement Carefully read any credit card or other credit offer from

### USING CREDIT WISELY AFTER BANKRUPTCY

USING CREDIT WISELY AFTER BANKRUPTCY Copyright April 2011, Legal Aid Society of Hawai`i All rights reserved. These materials may be reproduced. However, under no circumstances are persons receiving these

### Predatory Lending: Issues Affecting the Elderly

Predatory Lending: Issues Affecting the Elderly Elder Law Conference Friday, August 5, 2011 University of Mississippi School of Law Oxford, Mississippi A M A N D A G L O V E R E V A N S A T T O R N E Y

About Credit Financial Literacy What is Credit? Credit is the ability to borrow money with a promise of future payment. Why borrow? Goals - car, appliances, furniture, etc Home Education Health Plan your

Table of Contents Checking In... 3 Pre-Test... 4 What Is Credit?... 6 Collateral... 6 Types of Loans... 7 Activity 1: Which Loan Is Best?... 8 The Cost of Credit... 9 Activity 2: Borrowing Money Responsibly...

### Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Loan To Own 2

Loan To Own Welcome 1. Agenda 2. Ground Rules 3. Introductions Loan To Own 2 Objectives Identify various types of installment loans Identify the factors lenders use to make home loan decisions Identify

### BORROWER BEWARE: The High Cost of Payday and Auto Title Lenders, Pawnbrokers, and Rent-To-Own Stores

FACTS FOR OLDER CONSUMERS National Consumer Law Center BORROWER BEWARE: The High Cost of Payday and Auto Title Lenders, Pawnbrokers, and Rent-To-Own Stores What Is A Loan? A loan is borrowed money that

### FINANCIAL LITERACY WORKSHOP 3

FINANCIAL LITERACY WORKSHOP 3 Alternative Financial Services 1 Facilitator Needed Estimated Time: 1 hr 55 min Things to Prepare BEFORE THE WORKSHOP ITEM APPENDIX # PAGE # USED Flip Chart 3-1 A-3-1 3-2

### Using Credit to Your Advantage Credit Cards and Loans Participant Guide

Hands on Banking Using Credit to Your Advantage The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the program anytime at www.handsonbanking.org & www.elfuturoentusmanos.org

### Personal Loans 101: Understanding

Personal Loans 101: Understanding Small Dollar Loans If you are looking for a small loan, you may not be sure where to turn. Most banks and credit unions do not lend small amounts of money. Payday loans

### Money Borrowing money

Money Borrowing money Aims: To enable young people to explore ways of borrowing money and the advantages and possible consequences of doing so. Learning Outcomes: By the end of the session the participants

### Give Me a Little Credit: Short-Term Alternatives to Payday Loans. Sponsored by:

Give Me a Little Credit: Short-Term Alternatives to Payday Loans Sponsored by: Table of Contents Introduction and Summary How Payday Loans Work How Pawn Shop Loans Work How Car Title Loans Work How Installment

### It Is In Your Interest

STUDENT MODULE 7.2 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. It Is In Your Interest Jason did not understand how it

### Auto Title Loans. Pawn Shop Loans. Payday Loans. Rent-to-Own. Subprime Car Financing. Subprime Credit Cards

G N I W O R R O B Auto Title Loans Pawn Shop Loans Payday Loans Rent-to-Own Subprime Car Financing Subprime Credit Cards INTRODUCTION United Way for Greater Austin (UWATX) is an innovative, impact-driven

### Participant Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum

Loan to Own Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum Table of Contents Page Lending Terms 1 Consumer Installment Loan Versus Rent-to-Own 2 Federal Trade Commission

### Instructor Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum

Loan to Own Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum TABLE OF CONTENTS Page Module Overview 1 Purpose 1 Objectives 1 Time 1 Materials and Equipment Needed to Present

### Presentation Slides. Lesson Seven. Credit 04/09

Presentation Slides \$ Lesson Seven Credit 04/09 advantages and disadvantages of using credit advantages: Able to buy needed items now Don t have to carry cash Creates a record of purchases More convenient

### Part 2 Test Questions

Module 1 1. To reach a financial goal you should a. Spend less than you make so you can save money to reach the goal. b. Borrow from family or friends. c. Depend on luck, like winning the lottery. d. Not

### Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by:

Credit Workshop What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Concept Checklist What will I learn today? [ ] What is Credit? [ ] Advantages/

### The Good Credit Game Alignment with Financial Education National Standards

The Good Credit Game Alignment with Financial Education National Standards There are a number of national standards for teaching personal finance and financial literacy. Many of the learning objectives

### Teacher's Guide. Lesson Eight. Cars and Loans 01/11

Teacher's Guide \$ Lesson Eight Cars and Loans 01/11 cars and loans websites websites for cars and loans The internet is probably the most extensive and dynamic source of information in our society. The

### for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook

for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook Welcome! This workshop is about credit. Credit is buying something now, but paying for it later. Credit can be useful

### ACTIVITY 8.1 A MARGINAL PLAY

LESSON 8 BUYING ON MARGIN AND SELLING SHORT ACTIVITY 8.1 A MARGINAL PLAY Stockbroker Luke, Katie, and Jeremy are sitting around a desk near a sign labeled Brokerage Office. The Moderator is standing in

1 Lesson 7: About Credit Why Get Credit? To establish a credit history. Advantages and Disadvantages of Using Credit 1. Advantages Able to buy needed items now. Don t have to carry cash. Creates a record

### First Time Buyer Mortgage Information

First Time Buyer Mortgage Information If you re thinking about a Mortgage for your first home talk to us today A good time to talk to us? We re here to listen and help you whenever you need to talk to

### Buying with credit lets you purchase something and use it while you are still paying for it.

8) Credit Buying with credit lets you purchase something and use it while you are still paying for it. There are two common types of credit: Credit Cards Offered by credit card companies, department stores

### Lesson 8: So How Much Are You Really Paying for That Loan?

All About Credit Lesson 8: So How Much Are You Really Paying for That Loan? Standards and Benchmarks (see page C-46) Lesson Description Students learn what a payday loan is and the high cost involved in

### lesson nine cars and loans overheads

lesson nine cars and loans overheads the cost of owning and operating a motor vehicle ownership (fixed) costs: Depreciation (based on purchase price) Interest on loan (if buying on credit) Insurance Registration

### Presentation Slides. Lesson Nine. Cars and Loans 04/09

Presentation Slides \$ Lesson Nine Cars and Loans 04/09 costs of owning and operating a motor vehicle ownership (fixed) costs: Depreciation (based on purchase price) Interest on loan (if buying on credit)

### Personal Loans 101: UNDERSTANDING APR

Personal Loans 101: UNDERSTANDING APR In today s world, almost everyone needs access to credit. Whether it is to make a small purchase, pay for an unexpected emergency, repair the car or obtain a mortgage

### Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Borrowing Basics 2

Borrowing Basics Welcome 1. Agenda 2. Ground Rules 3. Introductions Borrowing Basics 2 Objectives Define what credit and a loan is Distinguish between secured and unsecured loans Identify three types of

### Outstanding mortgage balance

Using Home Equity There are numerous benefits to owning your own home. Not only does it provide a place to live, where you can decorate as you want, but it also provides a source of wealth. Over time,

### Don t Become a Victim

Don t Become a Victim Life Smarts: 1. Determine the federal laws that assist consumers from becoming victims of predatory lending. What is predatory lending? Predatory lending is the unfair, deceptive,

### 1 Identify your goal. What is it that you want to buy. 2 Gather information. What are the terms of the credit

Be a Savvy Credit User About 40% of credit card holders carry individual balances of less than \$1,000, while about 15% individually carry total card balances of more than \$10,000. Forty-eight percent of

### The Danger of Debt: Avoiding Financial Pitfalls

The Danger of Debt: Avoiding Financial Pitfalls LESSON 15: TEACHERS GUIDE When teens borrow money from a friend or relative to buy the latest gadget, the thought of returning the payment often comes second

### MODULE 3 THE NEXT BIG THING

INVESTING: STOCKS, BONDS & MUTUAL FUNDS This lesson has students learning about stocks, bonds, and mutual funds. The concepts of risk and reward, and return on investment (ROI) are explored. The FIT Work

### Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

usbank.com/student financialgenius.usbank.com Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest Loan Lessons The Low-Down on Loans, Interest

Using Credit to Your Advantage. Topic Overview. The Using Credit To Your Advantage topic will provide participants with all the basic information they need to understand credit what it is and how to make

### Financial Literacy. Credit is widely misunderstood and, perhaps even more to the point, widely misused. - Author Unknown. Section V.

Credit is widely misunderstood and, perhaps even more to the point, widely misused. - Author Unknown Section V Credit 113 Credit: Friend or Foe? Families today do not spend much time together talking about

### JUST BEGINNING. Your financial life is. I m Buying a Car!

Your financial life is JUST BEGINNING. The decisions you make now will put a steering wheel and a credit card in your hands. But they will also affect your financial future. Your choices may even prevent

### MANAGING CREDIT101 TM %*'9 [[[ EPXEREJGY SVK i

MANAGING CREDIT101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,

### When Finances Go Wrong - Debt

When Finances Go Wrong - Debt Very few people now have no debt at all after all a mobile phone contract, or your rent/mortgage are both debts. It becomes an issue for people when they cannot meet the payments

### Government mortgage rescue scheme What will it mean for me and my family?

Government mortgage rescue scheme What will it mean for me and my family? What is mortgage rescue? Mortgage rescue is help that the Government is offering if: you are struggling to keep up with your mortgage

### Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

Loan Lessons Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest The Low-Down on Loans, Interest and Keeping Your Head Above Water usbank.com/financialeducation

### Before you agree to buy a house, make sure

SPECIAL ALERT Office of the Attorney General, Consumer Protection Division Home Buyers: Beware of Flipping Scams Bought by "flipper" \$24,000 February Before you agree to buy a house, make sure you re not

### Take Charge of Credit Cards

Take Charge of Credit Cards Get Ready to Take Charge of Your Finances Introductory Level What is Credit? Credit- something is received in exchange for a promise to pay back money in the future Borrower

### LESSON 10 CONSUMER CREDIT: BUY NOW, PAY LATER, AND MORE

LESSON 10 CONSUMER CREDIT: BUY NOW, PAY LATER, AND MORE INTRODUCTION The word credit comes from the Latin word creditus meaning entrusted. Credit means that someone will lend you money and give you time

### SOME IDEAS THAT MAY HELP WITH. Credit Problems and How to Get Help

66308 1083 9/9/04 3:03 PM Page Cov1 SOME IDEAS THAT MAY HELP WITH Credit Problems and How to Get Help 66308 1083 9/9/04 3:03 PM Page Cov2 Table of Contents Do you have a credit problem? 1 Minor credit

### Financial Literacy. Banking and financial services

Financial Literacy Banking and financial services HANDOUT 4-1 Banks and credit unions 1 Banks and credit unions are places where you can safely deposit your money, cash your cheques, pay your bills, ask

### Written credit card applications are required You must request the application.

The Credit Card Act of 2010 limits teenagers ability to get credit cards and may slow the rate of college credit card debt and allow students to enter the real world with fewer financial obligations. Here

### Home Sweet Home: Purchasing a Place

Home Sweet Home: Purchasing a Place LESSON 16: TEACHERS GUIDE Ask teens to describe their dream homes, and many will rattle off the features of the latest celebrity mansion they ve seen on TV: 10 bedrooms,

### Different Types of Loans

Different Types of Loans All loans, no matter what they are, are either secured or unsecured. Knowing the difference can better help you understand how they work and what to expect when applying for one.

### BUYING YOUR FIRST HOME: THREE STEPS TO SUCCESSFUL MORTGAGE SHOPPING MORTGAGES

BUYING YOUR FIRST HOME: THREE STEPS TO SUCCESSFUL MORTGAGE SHOPPING MORTGAGES June 2015 Cat. No.: FC5-22/3-2015E-PDF ISBN: 978-0-660-02848-4 Her Majesty the Queen in Right of Canada (Financial Consumer

### The Danger of Debt: Avoiding Financial Pitfalls LESSON 3

The Danger of Debt: Avoiding Financial Pitfalls LESSON 3 The Danger of Debt: Avoiding Financial Pitfalls LESSON 3: TEACHERS GUIDE When teens borrow money from a friend or relative to buy the latest gadget,

### The Basics of Building Credit

The Basics of Building Credit This program was developed to help middle school students learn the basics of building credit. At the end of this lesson, you should know about all of the Key Topics below:»

### 3. How to Use Credit

3. How to Use Credit Building a Better Future 103 104 Building a Better Future UNIT 3: HOW TO USE CREDIT Lesson 1: What is Credit? Lesson Objectives: Students will understand why credit is important Students

### focused on me Vehicle Financing Guide

focused on me Vehicle Financing Guide Table of Contents Lease or Finance? 1 Cost of Buying a Vehicle 2 What you need to know about Financing 2 Understanding Vehicle Loan Financing Basics 3 Options for

### How to Out-Smart the Predators Assembled by:

Consumer Credit Workshop: How to Out-Smart the Predators Assembled by: Mike Deemer Attorney at Law Equal Justice Works Fellow Ohio State Legal Services Paul Wilkins Attorney at Law Equal Justice Works

### After Bankruptcy: What You Need to Know

After Bankruptcy: What You Need to Know The Path to Creditworthiness Bankruptcy offers some resolution to your financial worries. However, it also carries negative consequences and major responsibilities

### Coping with a Money Crunch Dealing with Creditors

Chapter 4: After the Disaster Coping with a Money Crunch Dealing with Creditors Outstanding bills and no money to pay creditors can be very frightening. Unemployment, death, illness, divorce or accident

### Lesson 13 Take Control of Debt: Become a Savvy Borrower

Lesson 13 Take Control of Debt: Become a Savvy Borrower Lesson Description After reviewing the difference between term loans and revolving credit, students analyze a fictitious character s use of credit

### Car Title Loans. What is a car title loan? How does a car title loan work?

Car Title Loans What is a car title loan? When you take out a car title loan, you are borrowing money and giving the lender the title to your car as collateral. This means that the lender can repossess

### Exercise 4A: What Info Do You Need for a Loan?

Exercise 4A: What Info Do You Need for a Loan? What information do you think is needed to get a loan? Review several samples of loan applications to see what The Cost of Using Credit As mentioned earlier,

### How To Cut The Cost of Credit

Published by the NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS May be reproduced with appropriate credit. For more information, contact: [ ] How To Cut The Cost of Credit Distributed by: Missouri

### debt solutions education financial strategies

debt solutions education financial strategies Our Mandate To educate Canadians in personal money management and the wise use of credit To help individuals and families find solutions to their financial

### How do I get good credit?

Slide 1 Credit The information provided in this e-course is intended for educational purposes only and does not constitute specific advice for you as an individual. When evaluating your particular needs,

### Financial Management

I. Banking landscape today In the past year alone, banks have taken many actions to make up for lost profits, including eliminating free checking, raising fees, and pushing customers to buy more financial

### Credit arrangements can be formal or informal. The three most common types of credit used by consumers are described below.

1-888-842-6328 For toll-free numbers when overseas, visit Collect internationally 1-703-255-8837 TDD for hearing impaired 1-888-869-5863 Credit Wise Credit: a Useful Tool Most of us use consumer credit

### Credit and Debt Management module

Credit and Debt Management module Trainer s introduction Credit and debt probably cause more serious consumer problems than any other topic. It s relatively easy to take on debt, but harder to manage it

### CREDIT IN A NEW COUNTRY:

CREDIT IN A NEW COUNTRY: A GUIDE TO CREDIT IN CANADA A free publication provided by Consolidated Credit Counseling Services of Canada, Inc., a registered charitable credit counselling and debt management

### Credit Cards. The Language of Credit. Student Loans. Installment Loans 12/17/2015. Quick Response. Unit 4 - Good Debt, Bad Debt: Using Credit Wisely

Quick Response Explain how you think credit cards work. How much do you have to pay every month? What happens if you pay late? What kinds of fees are involved? Unit 4 - Good Debt, Bad Debt: Using Credit

### Handbook: The Cost of Borrowing. Learn what you need to know quickly.

Handbook: The Cost of Borrowing Learn what you need to know quickly. Money Matters Handbook: The Cost of Borrowing Groceries cost. Clothes cost. Furniture costs. And it costs to borrow money. The amount

### Car loans. Richie found it pays to shop around. How do car loans work? Factsheet. August 2011

Factsheet August 2011 Apart from your home, a car is one of the biggest single purchases you re ever likely to make. If you don t have the cash to pay for it upfront, you ll need to borrow money. And,

### It s Your Paycheck! Glossary of Terms

Annual percentage rate The percentage cost of credit on an annual basis and the total cost of credit to the consumer. APR combines the interest paid over the life of the loan and all fees that are paid

### Assets are items you own that have a monetary value such as property, car, shares, antiques or savings.

Debt Jargon Adverse credit If you fall into arrears or default on a loan or credit agreement, the resulting effect on your credit history is described as having adverse credit. This makes it harder or

### How much will a two-week, \$200 payday loan cost?

PAYDAY LOAN SINGLE PAYMENT After reviewing the terms of the loan, you are not required to choose this loan, and may consider other borrowing options, including those shown on Page 2 of this document. Borrowed

### Borrowing Basics. FDIC Money Smart for Young Adults. Building: Knowledge, Security, Confidence

Borrowing Basics FDIC Money Smart for Young Adults Building: Knowledge, Security, Confidence Purpose Help you to determine: How to use credit appropriately What forms of credit best suit your needs 2 Objectives

### taking control of your debt Using Smart Money Management to Reduce Your Debt

taking control of your debt Using Smart Money Management to Reduce Your Debt F I N A N C I A L M E N T O R I N G P R O G R A M IN THIS MODULE YOU WILL LEARN HOW TO: Identify warning signs of debt problems.

### Responsibilities of Credit. Chapter 18

Responsibilities of Credit Chapter 18 Responsibilities of Consumer Credit To Yourself To Your Creditors Creditors to You Loan Offer I (Mr. Vesper) will loan you \$100.00 today if you agree to pay me \$105.00

### PAYDAY LOANS The Facts

PAYDAY LOANS The Facts ALABAMA ASSET BUILDING COALITION Prepared by the Alabama Asset Building Coalition with support from the Howard University Center on Race and Wealth November 2013 Introduction Many

### This topic is about credit. It helps your client understand the different types of credit, credit contracts and their credit files.

Overview 6: Credit This topic is about credit. It helps your client understand the dierent types of credit, credit contracts and their credit files. Section: content for the worker and resources Key messages

### The Cost of Payday Loans

The Cost of Payday Loans Table of Contents What is a payday loan? 1 How does a payday loan work? 2 How and when do I pay back the loan? 4 How does a payday loan affect my credit report? 4 How much will

### Lesson 2: Savings and Financial Institution Knowledge Making the Most of Your Money

Lesson 2: Savings and Financial Institution Knowledge Making the Most of Your Money All the materials and information included in this presentation is provided for educational and illustrative purposes

### SM4-1: Credit Card Application (version 1)

SM4-1: Credit Card Application (version 1) SM4-1: Credit Card Application (version 1) pg. 1 of 2 SM4-1: Credit Card Application (version 1) continued SM4-1: Credit Card Application (version 1) pg. 2 of

### Government mortgage rescue scheme What will it mean for me and my family?

Government mortgage rescue scheme What will it mean for me and my family? What is mortgage rescue? Mortgage rescue is help that the Government is offering if: you are struggling to keep up with your mortgage

### Renting vs. Owning a Home

Renting vs. Owning a Home Grade Level 10-12 Take Charge of Your Finances Materials provided by: Cathe Felz, Family and Consumer Sciences Educator, Three Forks High School, Three Forks, Montana Time to

### Introduction. Purpose. Student Introductions. Objectives (Continued) Objectives

Introduction Instructor and student introductions Module overview 1 2 Your name Student Introductions Your expectations, questions, and concerns about loans Purpose Loan to Own provides general information

### Understanding Vehicle Financing

Understanding Vehicle Financing Understanding Vehicle Financing With prices averaging more than \$31,000 for a new vehicle and \$17,000 for a used model from a dealership, you might consider financing or

### BdC Corporate Credit Department Information Document. Introduction

BdC Corporate Credit Department Information Document Introduction The Banco di Caribe Corporate department aims to offer the best quality service and the most appropriate solutions to its customers whether

### Unit 7: Debt, Debt Reduction, & Bankruptcy

Read Chapter 7 in the text. Unit 7: Debt, Debt Reduction, & Bankruptcy Read this unit including websites. You may want to take notes on the key points. You can't borrow your way to wealth. That sounds

### PAYDAY AND TITLE LOANS

PAYDAY AND TITLE LOANS Payday loan? A payday loan also known as cash advance is a form of an unsecured, short term loan that is meant to cover applicant s short term expenses. The loan is repaid on an

### What Will Keep Me From Getting A Mortgage Right Now?

What Will Keep Me From Getting A Mortgage Right Now? Why can t I get a mortgage? Why was my mortgage application denied? What s keeping me from getting a mortgage right now? Page 2 of 11 What Will Keep