Chapter 4 Debt

Objectives

Section 1: Debt: Product, Not Privilege

* Identify the costs of using various types of credit

Section 2: Debunking the Credit Myths

* Evaluate and refute the myths associated with debt

* Apply systematic decision making to identify the most cost-effective option for purchasing a car

* Identify various types of mortgage loans and the most cost-effective option for purchasing a home

* Evaluate ways that debt can negatively affect your financial future and how to overcome personal debt

Section 3: The Credit Score

* Describe the elements of a credit score

* Understand how to obtain a credit report

* Explain how a credit score affects creditworthiness and the cost of credit

* Explain the factors that affect a credit score

* Analyze a credit report, indicate the time that certain negative data can be retained, and describe how to dispute inaccurate entries

Section 4: Credit Bureaus and Identify Theft

* Identify organizations that maintain consumer credit reports

* Summarize major consumer credit laws

* Develop a plan for protecting personal information

Vocabulary

• • Annual Fee

  • Annual Percentage Rate (APR) 

  • Credit Card

  • Credit Report

  • Credit Score

  • Debt Snowball

  • Depreciation

  • Introductory Rate

  • Loan Term

  • Tax Deduction

  • Credit

  • Debt

  • Interest

  • Loan