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