1. a Dealing with Dollar $ workshop Understanding Credit and Debt

2. Money that is available to us for borrowing What promise is involved with use of credit? a. To share what you have bought b. To send them a thank you card c. To repay using future income Credit

3. “Good Credit” should improve someone’s financial position. What they have bought will increase in value over time. “Bad Credit” won’t improve someone’s financial position. What they are buying has no value or will decline in value.

4. Credit Card Mortgages Lines of Credit

5. The total amount of money we owe Debt

6. Tim Horton’s sells… Toyota sells… Dominion sells… A Bank sells… Borrowing

7. This is the cost of borrowing money. You get a loan of $1000 at a rate of 5% What is the cost of borrowing the $1000? What if the interest rate is higher at 12% What is the cost of borrowing the $1000?

8. Don’t take on more debt than you can handle Manage you debt by making payments on time To pay off debt  Sell possessions  Consolidate your debts  Go to a credit counsellor  Bankruptcy

9. A ______ ______ is based on your record of repaying money that you have borrowed. A ______ ______ is an estimate of whether or not you can repay credit.