Managing Debt
Sponsored by
Discover and Discovery Education
Unit
Overview
Managing
Debt: You will learn about
credit reports and the information they include. Then you will learn about
credit scores, including what they are based on and how they are used. The unit
concludes with an exploration of various options for paying off debt and
avoiding debt-related scams.
Section A – Checking Your Credit Report
What is a credit report, and how do you know what is in yours?
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The Credit Process |
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Credit: goods, services, and/or money received in
exchange for a promise to pay back a definite sum of money at a future date |
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Borrower |
Someone who receives something with the promise to return it
or to repay what is borrowed |
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Lender |
Person or organization who makes funds available for others to
borrow |
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Credit History |
Record of the borrower’s past loan and credit-related
transactions |
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How Credit Reports are Created |
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Summary |
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Section B – Improving
Your Credit Score
In this
module, you will explore how lenders judge whether someone will be a good
borrower, the components of a credit score, and how they can improve their
credit score to get favorable loans on houses and cars in the future.
Click below
to begin the module.
Section C – Managing
Debt
In this
module, you will explore various strategies for paying off debt (lowest balance
first vs. highest interest rate first, debt transfer, and consolidation), how
to avoid scams and the consequences of poor debt management.
Click below
to begin the module.
