Identify strategies for effective debt management, including sources of assistance.
DefinitionIdentification should include strategies such as
- maintaining a record-keeping system
- avoiding penalties
- using early payoff, if advantageous
- ensuring against identity theft
- avoiding debt problems (e.g., liens, foreclosures, garnishments, repossessions, evictions).
- guidelines distinguishing between legitimate credit denial vs. discrimination
- the right to appeal a credit denial
- laws that can protect consumers who have credit problems
- ramifications of bankruptcy laws
- telephone directory listings and Internet sites for credit counseling services and commercial debt-adjustment firms that can help clients address credit problems, manage debt, and rebuild credit.
Other Related Standards
Economics and Personal Finance Standards of Learning
The student will demonstrate knowledge of credit and loan functions by
- evaluating the various methods of financing a purchase;
- analyzing credit card features and their impact on personal financial planning;
- identifying qualifications needed to obtain credit;
- identifying basic provisions of credit and loan laws;
- comparing terms and conditions of various sources of consumer credit;
- identifying strategies for effective debt management, including sources of assistance;
- explaining the need for a good credit rating;
- comparing the costs and conditions of secured and unsecured loans; and
- comparing the types of voluntary and involuntary bankruptcy and the implications of each.