Handling Debt.

Slides:

Advertisements

Similar presentations

Chapter 9-Section 2 Bankruptcy Choices. Bankruptcy  A legal procedure to relieve a person of excessive debt.  Voluntary bankruptcy-the individual asks.

Advertisements

Problems with Credit Unit 3. Did You Know?  Most lottery winners spend all of their winnings and are broke within 5 years.  40% of all personal bankruptcies.

Your rights Credit. Your rights Truth in Lending Act (1968) Ensures consumers are fully informed about cost and conditions of borrowing. Fair Credit Reporting.

BANKRUPTCY. VOCAB ▫Bankrupt – a person or company with insufficient assets to cover their debt ▫Bankruptcy – a state of being legally released from the.

Credit Card Basics. Getting the idea Debit cards can be used almost anywhere that credit cards can be used. But there is a big difference between them.

Credit and Its Use.

Back to Table of Contents pp Chapter 26 How to Get and Keep Credit.

Credit You're in Charge What is Credit ??? Credit is an arrangement to Receive cash, goods, or services now and pay for them in the future!

MONEY MANAGEMENT II Debt, Counseling & Bankruptcy.

Credit Receiving something now and promising payment at a later time. Principle: Actual cost of the good or service. Interest: Amount paid for the use.

Credit BELL RINGER  What is credit?  Does credit cost?  What are the advantages of using credit?  What happens if I misuse credit?

LAW CREDIT Credit: buying goods or services or borrowing money in exchange for a promise to pay in the future 1.Creditors: people who lend money 2.Debtors:

Law in American Society Ms. Gikas.  Credit: buying goods or services or borrowing money in exchange for a promise to pay in the future  Creditors: people.

Credit Law in Society Objective: To understand the use of and acquisition of credit.

Got Credit? Bankruptcy Law Debt? Moving Out Grab Bag Know That.

Chapter 9-Section 1 Resolving Credit Problems. Disputing Charges—Credit Card Statement  Disputing Charges—the process of informing a credit card company.

Using credit is a way of life. People use credit online and for everyday purposes. Some do it so they don’t have to carry cash. Some use it to buy things.

Rating Your Credit and Help for Credit Problems. What is your credit score? A score that tells everyone if you are a good risk Credit bureaus sell credit.

Section 6.4 Managing Your Debts. Signs of Debt Problems If you are experiencing 2 or more of the these warning signs it is time for you to rethink your.

CHAPTER 9 CREDIT PROBLEMS AND LAWS LESSON 9-1: RESOLVING CREDIT PROBLEMS Learning Goals -Explain how to dispute errors on billing statements and list ways.

Bad Credit? Tough Luck!?. stops people from getting mortgages, stops people from getting mortgages, car loans and credit cards car loans and credit cards.

Warm up for Please answer the following questions in the same section of your notebook as your CNN student logs please. I will check your logs.

Credit Problems Garnishment of wages Garnishment of wages Creditor takes all or part of paycheck to satisfy a debt Repossession Repossession Taking back.

MAINTAINING A GOOD CREDIT RATING. CLAUSES AND CONTRACTS Contract - read what you sign Preapproved - the bank will allow you to buy the item  Only you.

Chapter 6 Managing Your Debts 6.4 Managing Your Debts 6.4.

Credit Questions to Consider  What is credit?  Does credit cost?  What are the advantages of using credit?  What happens if I misuse credit?

Ms. Young Slide 4-1 Unit 4C Loan Payments, Credit Cards, and Mortgages.

Unit 4 Credit and Debt What is Credit? Someone lends you money 1. The original amount borrowed is called the ___ Principal.

Credit and Financial Services Chapter 25- Each payment method has certain pros and cons that are important to know.

MR. Kiser – Financial Literacy  Default – This happens when a borrower fails to pay the debt owed  Credit – Allows you to buy goods or services.

Principles of Personal Finance Instructor: xxxx. Objectives Define successful personal financial management and the importance of planning a financial.

Chapter 9 Objectives 1.Explain how to dispute errors on billing statements 2. Explain the purposes and types of bankruptcy and list strategies for avoiding.

Using Credit Wisely Ch. 14. Understanding Costs  Before you can compute the cost of credit, you have to know four things:  The amount you are borrowing.

Getting Control of Debt. How much debt does the average Canadian have?

Dealing with a Drop in Income Bev Doll Family Living Agent UW-Extension May 15, 2009.

Daily Information 6/2 Objectives: 1.Describe the different types of bankruptcy. 2.Identify ways to protect yourself from credit card fraud. Warm Up: What.

 The Students Will: Define credit Explain advantages and disadvantages of using credit  Agenda Lecture (notes, videos) Credit Problems activity Discussion.

HOW TO GET AND KEEP CREDIT

College lesson nine in trouble presentation slides 04/09.

Credit and Debt *1. What is Credit? Someone lends you money

Understanding Bankruptcy

Unit 7 Credit and Debt 1. What is Credit? Someone lends you money

Read to Learn Explain one major difference between credit cards, installment loans, and mortgages. Indicate at least three ways to maintain a good credit.

Unit 4 Consumer and Credit Law

Debt, Counseling & Bankruptcy

Chapter 7: Planned Borrowing

Borrowing Econ 10/13.

Who Determines your Score? Three Credit Bureaus:

Chapter 19 Problems with Credit.

Building Your Credit Partners In Community Building, Inc 2018.

Teens lesson thirteen in trouble presentation slides 04/09.

Protection of credit right

Bankruptcy and Personal Financial Records

Financial Concepts &Terminology

Debt Consumer Math.

Credit Review Fall 2014.

Financial Education for High School Students

Getting and Keeping Good Credit

Bankruptcy/Getting Out of Debt

Chapter 7: Planned Borrowing

Teens lesson thirteen in trouble presentation slides 04/09.

Managing Your Debts By: Anna & Anna.

LESSON THREE: SAVVY SHOPPING

Credit and Credit Reports

Gov’t Regulations of Credit *Usury Laws-- -state laws

How to Get and Keep Credit

Bankruptcy and How to Get Out of It

Personal Finance Chapter 11 Consumer Credit

Presentation transcript:

Handling Debt

Managing Debt The quicker you pay off your debt, the less interest you’ll have to pay Most types of credit utilize an amortization system of payment What TWO things do you have to pay when you use credit? Interest payments are high at the beginning; principal payments are low Interest payments decrease as time goes by; principal payments increase http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

Warning Signs of Debt Problems Maxing out your credit cards Skipping payments on some bills so that you can pay off others Charging more to your credit card than what you own Your credit score is dropping rapidly

Going Into Default Default What can the creditors do? Failure to pay off your debt What can the creditors do? Repossess your purchases Use a collection agency to get their money back Force a garnishment Portion of your paycheck given directly to your creditors

Getting Out of Debt Create a plan with your creditors Adjust payment terms/payment schedule Stop using credit cards! Use debit card instead (spend only what you have) Get a credit counselor Professional who will help you set up a plan to pay back your debt

Bankruptcy A legal process to relieve you of some of your debts Requires a court-approved debt management plan LAST RESORT! Ruins your credit score for up to 10 years

Quick Review How can you decrease how much interest you pay on your debt? If a creditor has a court order a garnishment, what are they getting? What should you do with your credit cards if you are trying to get out of debt? When should bankruptcy be used in the process of getting out of debt? Pay the debt off quicker A portion of your paycheck to help pay off your debt Stop using them! Last resort!