HSFPP Home > Students > Unit 4 – Good Debt, Bad Debt

Unit 4 Good Debt: Bad Debt: Using Credit Wisely
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Unit Competency and Objectives

Unit Overview: This outlines what you will learn in this unit and a way to track your progress on assignments and the assessment.

Student Learning Plan: Use this learning plan to track which learning activities you have accomplished through the unit.

 

Exercises

Exercise 4A: What Info Do You Need for a Loan?
You'll read over several sample loan applications to find out what information you need to provide when you apply for a loan.

Exercise 4B: Scavenger Hunt for Credit
You'll scavenge through newspapers, magazines, etc., to find three print ads for credit. Then, you'll classify the types of credit featured and identify the terms and costs of each offer. On your mark, get set, go!

Exercise 4C: Rewards and Risks of Credit
Share your perceptions about credit by listing the rewards and risks of using credit. Include anything else you think is interesting about credit.

Exercise 4D: On the Go—Getting Wheels
So you want to buy a car! In this exercise, you'll imagine you're buying a used Honda Civic. How much will the car cost with the features you want? Is the car loan you're looking at a good deal?

Exercise 4E: Apply for a Loan
You'll fill out a sample loan application and decide which information provides details on your personal 4 C's of credit: collateral, capacity, capital, and character.

Exercise 4F: What's the Rating?
You'll review Carmen's credit application and decide if you'd approve it and with what terms.

Exercise 4G: What Are the Priorities?
You'll evaluate five debts and prioritize which should be paid back first.

Exercise 4H: Rights and Responsibilities of Using Credit
You'll read through a loan contract to list the rights and responsibilities of using that type of credit.

 

Assignments

Assignment 4-1: 5 FAQs About Credit
Required Criteria
What kinds of questions do you think people often ask about credit? Brainstorm five questions plus answers in the form of a frequently asked questions (FAQs) list.

Assignment 4-2: Compare Phone Plans
Required Criteria
How do the terms, advantages, and disadvantages of phone plans from different companies compare? In this assignment, you'll be dialing for details on at least two local phone plans to find out.

Assignment 4-3: My 4 C's of Credit
Required Criteria
How creditworthy are you? This assignment asks you to provide evidence of how you meet the 4 C's of Credit.

Assignment 4-4: Please Correct My Credit Report
Required Criteria
What would you do if your credit reported wasn't accurate? You'll write a letter to one of the credit reporting agencies asking that your report be corrected.

 

Assessment

Assessment 4-1: My Plan to Handle Credit
Required Criteria
How will your current credit history affect your ability to obtain and use credit in the future? You'll refer back to your answers to Assignment 4-3 to identify ways to improve your credit history as well as develop strategies for managing credit and debt.

 

Optional Activities

In the Instructor's Manual, teachers are provided “optional activities” to supplement your learning. Not all teachers will have time to have you complete in class. In case you are interested in expanding your knowledge a bit more, check out the optional activities below. Once you complete an activity, you mind need to check your answers with your teacher. They have a copy of the answer keys.

• You'll think about when you have borrowed or loaned something and list the terms and expectations of that loan.
• You'll use the simple interest formula to calculate how much interest will be paid on the loans listed in Impact of Different Loan Factors to be handed out by your teacher.
• You'll ask two adults to talk with you about their experiences with using credit, including any advice or regrets. You'll share this information with your class.
• You'll listen to a credit rep speak about how to apply for credit. You'll summarize what you learned and will apply to your own use of credit.
• You'll make believe you're a loan officer who is evaluating credit applications.
• For one minute, you'll think about and write down strategies you can follow for responsible credit use.
• Are you thinking about making a major purchase that will require you to use credit? You'll use the decision-making process to compare three credit options related to your purchase and select the best one.
• You'll hear a credit rep talk about strategies for managing credit. Once again, you'll summarize what you learned and will apply to your own use of credit.
• You'll find out how to request free credit reports from any of the three credit reporting agencies.
• You'll find out how to request that you stop receiving credit solicitations through regular and online mail.
• You'll work alone or with a partner to complete the Unit 4 Success Street Sweep on the HSFPP Web site.

 

Supplementary Materials

There are some handouts which “supplement” what you are learning in the curriculum. Your teacher has some in the Instructor's Manual. But, if you are curious – explore.

 

Taking It Home

For Students:

1. You'll take home and read a newsletter article containing strategies to manage credit, control debt, and protect your rights related to credit.
2. You'll ask your parents about how they manage credit.

For Parents:

1. You'll read the newsletter article your teen brings home from school regarding strategies to manage credit, control debt, and protect your rights related to credit.
2. You'll discuss with your teen the strategies you use to manage credit.

 

Links

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