1. Wednesday April 22, 2015 Go Over Last Night’s Homework Credit Notes
Agenda
Go Over Last Night’s Homework
Credit Notes
What NOT to do: Presented by the Big Tymers
Bankruptcy Article

2. Civics and Economics Day 143

3. Last Night’s Homework
Answer the following questions in complete sentences.
What are the three parts of a budget?
Why is savings so important?
Why is saving now better than saving later?
What is the difference between a credit card and a debit card?

4. Credit Notes

5. What is Credit?
Credit is your ability to obtain goods or services based on trust that payment will be made in the future.
“Can you be trusted to pay back your money?”
“Are you credit worthy?”

6. Costs of Using Credit
Finance charges
Interest
Late fees

7. Bank Loans Big loans Repaid monthly with interest added
Smaller loans
Ex: Credit cards
Big loans
Homes, cars, businesses
Repaid monthly with interest added
To get a loan, you’ll need a credit history.
The better your credit history, the lower your interest rate

8. Co-Signer If you have bad credit, you may need a co-signer
A co-signer is The person who agrees to be responsible for loan payments if the borrower fails to make them.

9. For a healthy credit report…
Open a checking and savings account
Open utility and rent accounts in your name
Get a credit card and pay the balance each month
Pay all bills ON or BEFORE the due date

10. For a poor credit report…
Don’t establish credit in your name
Pay bills late, or worse… not at all
One late payment on a credit card can cause the interest rate to go up 5-10%
Get turned over to collection agencies
Declare bankruptcy

11. What NOT to do: Presented by the Big Tymers
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What NOT to do: Presented by the Big Tymers

12. What did they do that was bad for your credit?

13. Bankruptcy Articles In partners…On One Sheet of Paper.
Read the two articles about Bankruptcy and answer the 13 questions on bankruptcy.
Questions 1-5: “What is the difference between chapter 11, chapter 7 and chapter 13 bankruptcy?”
Questions 6-14: “6 Bankrupt Celebrities Who Went From Rich to Broke”