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• Activity 1………….…………The ABCs of  Credit• Activity 2……………….……………Credit  Scores• Activity 3………….…………Establishing  Credit• A...
ACTIVITY 1    The ABCs of CreditOverview•   What is credit?•   The five Cs of credit•   Pros and cons of using credit•   T...
CREDIT DEFINITIONSCreditTrust given to another person for futurepayment of a loan, credit card balance, etc.CreditorA pers...
THE FIVE Cs OF CREDIT   C = Capacity   C = Capital   C = Collateral   C = Conditions   C = Character                      ...
WHEN TO USE CREDITCan you describe a situation when it isa good time to use credit and when it isNOT a good time to use cr...
QUESTIONS TO ASK     BEFORE USING CREDIT1.2.3.4.5.6.7.                                         Slide 4 – Questions to Ask ...
ACTIVITY 2        Credit ScoresOverview• Credit scores and their impact• The factors that make up a credit score• Strategi...
WHAT IS A CREDIT SCORE?•   A credit score is a number that helps a lender predict how    likely an individual is to repay ...
WHATMAKES UP A TYPICAL  CREDIT SCORE?Source: Fair Isaac and Consumer Federation of                America, 2005           ...
IMPROVING YOUR CREDIT                 SCORE     •   Pay bills on time.     •   Get current and stay current.     •   Don’t...
ACTIVITY 3         Establishing Credit     Overview     •   Types and sources of credit     •   Credit safeguards     •   ...
TYPES OF CREDIT     Cash Credit        I.O.U.     Sales Credit       Single Payment Credit     Secured Credit     Installm...
SOURCES OF CREDIT         Banks         Retail        Savings &                       Stores          Loan                ...
STEPS TO TAKE TO AVOID           ABUSIVE LENDING     1. Have you shopped around for the best        deal?     2. Do you fe...
COMMON PARTS OF A          CREDIT APPLICATION     •   Reason for Loan     •   Personal Identification Information     •   ...
SAMPLE CREDIT APPLICATION16                                     Slide 5 – Sample Credit Application                       ...
QUESTIONS TO ASK WHEN              APPLYING FOR CREDIT     1.   What is the annual fee?     2.   What is the annual percen...
ACTIVITY 4               Maintaining               Good Credit     Overview     • Debt to income thermometer     • Credit ...
DEBT-TO-INCOME      THERMOMETER                             Slide 1 – Debt-to-Income Thermometer19                Lesson R...
THE CREDIT PROCESS        CREDIT HISTORY               •        CREDIT BUREAU               •        CREDIT REPORT        ...
SAMPLE CREDIT REPORT                                       Slide 3 – Sample Credit Report21                   Lesson Refer...
CREDIT SAFEGUARDS FOR CONSUMERS                Truth In Lending Act              Fair Credit Reporting Act            Equa...
THE FAIR AND ACCURATE CREDIT            TRANSACTION ACT     One of the primary objectives behind the Fair and Accurate Cre...
THINGS TO DO TO ESTABLISH           AND MAINTAIN GOOD CREDIT     What can everyone do to establish and     maintain good c...
ACTIVITY 5                Credit Cards     Overview     • Types of credit cards     • Shopping for a credit card     • Cos...
TYPES OF CREDIT CARDS     Private Label     • Issued by a single source     • Can only be used at a single source     • Ex...
SHOPPING FOR A CREDIT CARD      DECISIONS, DECISIONS...     ANNUAL FEE?                             APR?        COMPUTATIO...
QUESTIONS TO ASK WHEN     SHOPPING FOR A CREDIT CARD     •   Annual fee     •   Annual percentage rate (APR)     •   Minim...
COSTS OF CREDIT     How much can credit cost? If you make only the minimum     payment for an item, here are some examples...
ACTIVITY 6            Managing Credit              Challenges     Overview     •   Warning signs of credit abuse     •   C...
MEASURING THE        SERIOUSNESS OF CREDIT            TROUBLE SIGNS     Rate how serious you think each of the     followi...
WARNING SIGNS OF DEBT           PROBLEMS        1. Delinquent Payments        2. Default Notices        3. Repossessions  ...
CREDIT CARD REDUCTIONS     Paying only the minimum payments on your credit card may     seem appealing, but if only minimu...
CORRECTING CREDIT ERRORS     1. Circle the incorrect items on your credit report.     2. Write a letter to the reporting a...
CORRECTING CREDIT               PROBLEMS     •   Take responsibility for actions.     •   Communicate with creditors.     ...
ACTIVITY 7                Identity Theft     Overview     • The growing problem of identity theft and how it       occurs ...
IDENTITY THEFT     Identity theft occurs when someone uses your     personal identifying information to either establish  ...
HOW TO AVOID IDENTITY                    THEFT     1.   Monitor your credit report.     2.   Don’t give out personal infor...
WHAT TO DO IF YOUR                 IDENTITY             HAS BEEN STOLEN     If you think your identity has been stolen, ta...
ACTIVITY 8      Prime and Subprime            Lending     Overview     • Subprime and prime lending definitions     • Alte...
PRIME AND SUBPRIME                 MORTGAGE LENDING     Prime     Prime credit is typically available to an individual who...
THE PRICE OF SUBPRIME                    LENDING     How much does a subprime loan cost you? If you are making     payment...
MOVING FROM               SUBPRIME TO PRIME     If you currently have a lower credit score and want to be able     to qual...
ACTIVITY 9        Predatory Lending     Overview     • Characteristics and warning signs of predatory       lending.     •...
PREDATORY LENDING     In communities across America, people are losing their homes     and their investments because of pr...
IDENTIFYING              PREDATORY LENDING     Predatory lending is not defined by federal law except to the     extent th...
TEN WARNING SIGNS OF     PREDATORY MORTGAGES      1.   Unreasonably high interest rates      2.   Multiple refinancing    ...
COMMON SCAMS     •   Advance fee schemes     •   The prize that will cost you     •   Online auctions     •   Fraud jobs  ...
TOP STRATEGIES TO AVOID                  SCAMS     •   Don’t become a victim.     •   Investigate strangers who have deals...
ADDITIONAL RESOURCES     • Department of Housing and Urban Development (HUD) —       Office of Consumer and Regulatory Aff...
ACTIVITY 10                  Bankruptcy     Overview     •   Chapter 7, 11, and 13 bankruptcies     •   Provisions of the ...
BANKRUPTCY     Chapter 7 wipes out all allowable debts and     allows certain personal property exemptions.     Chapter 13...
NEW PROVISIONS OF THE               BANKRUPTCY LAW     •   A test to determine eligibility to file bankruptcy     •   Dete...
THINGS TO CONSIDER BEFORE            FILING FOR BANKRUPTCY     •    A bankruptcy filing could determine whether or        ...
THINGS TO DO BEFORE                   DECIDING TO FILE                  BANKRUPTCY, CONT.     •   Reduce your spending    ...
TIPS TO REMEMBER     • Keep track of your daily expenses.     • Save money on a regular basis.     • Make changes right aw...
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Credit

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Credit

  1. 1. • Activity 1………….…………The ABCs of Credit• Activity 2……………….……………Credit Scores• Activity 3………….…………Establishing Credit• Activity 4………….…Maintaining Good Credit• Activity 5………….………………….Credit Cards• Activity 6……….Managing Credit Challenges
  2. 2. ACTIVITY 1 The ABCs of CreditOverview• What is credit?• The five Cs of credit• Pros and cons of using credit• The big decision—Should I use credit? Credit - Activity 1
  3. 3. CREDIT DEFINITIONSCreditTrust given to another person for futurepayment of a loan, credit card balance, etc.CreditorA person or company to whom a debt isowed. Slide 1 – Credit Definitions Lesson Reference: Credit, Activity 1 – Handout 1
  4. 4. THE FIVE Cs OF CREDIT C = Capacity C = Capital C = Collateral C = Conditions C = Character Slide 2 - The Five Cs of Credit Lesson Reference: Credit, Activity 1 – Overhead 1
  5. 5. WHEN TO USE CREDITCan you describe a situation when it isa good time to use credit and when it isNOT a good time to use credit? Slide 3 – When to Use Credit Lesson Reference: Credit, Activity 1 – Handout 2
  6. 6. QUESTIONS TO ASK BEFORE USING CREDIT1.2.3.4.5.6.7. Slide 4 – Questions to Ask Lesson Reference: Credit, Activity 1 – Handout 3
  7. 7. ACTIVITY 2 Credit ScoresOverview• Credit scores and their impact• The factors that make up a credit score• Strategies to improve your credit score Credit - Activity 2
  8. 8. WHAT IS A CREDIT SCORE?• A credit score is a number that helps a lender predict how likely an individual is to repay a loan, or make credit payments on time.• A credit score is a number that changes as the elements in a credit report change.• A credit score has broad use and impact. Your credit past is your credit future.• FICO® scores, one of the most common credit scoring systems, vary between 350 and 850.• VantageScoreSM, a new credit scoring system developed by the three credit bureaus, ranges from 501-990. Slide 1 – What Is a Credit Score? Lesson Reference: Credit, Activity 2 – Overhead 1
  9. 9. WHATMAKES UP A TYPICAL CREDIT SCORE?Source: Fair Isaac and Consumer Federation of America, 2005 Slide 2 – What Makes Up a Typical Credit Score? Lesson Reference: Credit, Activity 2 – Overhead 2
  10. 10. IMPROVING YOUR CREDIT SCORE • Pay bills on time. • Get current and stay current. • Don’t open a lot of new accounts too rapidly. • Correct mistakes. • Shop for loan rates within a focused period of time. • Keep balances low on revolving credit. • Pay off debt.10 • Check your credit report. Slide 3 – Improving Your Credit Score Lesson Reference: Credit, Activity 2 – Handout 2
  11. 11. ACTIVITY 3 Establishing Credit Overview • Types and sources of credit • Credit safeguards • Applying for credit • Questions to ask when applying for credit11 Credit - Activity 3
  12. 12. TYPES OF CREDIT Cash Credit I.O.U. Sales Credit Single Payment Credit Secured Credit Installment Credit Revolving Credit Other Types of Credit12 Slide 1 – Types of Credit Lesson Reference: Credit, Activity 3 – Handout 1
  13. 13. SOURCES OF CREDIT Banks Retail Savings & Stores Loan Associations Credit Finance Union Companie Internet s s Stores What are other sources of credit? What sources of credit should be avoided? Why?13 Slide 2 - Sources of Credit Lesson Reference: Credit, Activity 3 – Overhead 1
  14. 14. STEPS TO TAKE TO AVOID ABUSIVE LENDING 1. Have you shopped around for the best deal? 2. Do you feel the lender pressured you to take the loan? 3. Do you understand the terms of the loan?14 Slide 3 – Avoiding Abusive Lending Lesson Reference: Credit, Activity 3 – Handout 2
  15. 15. COMMON PARTS OF A CREDIT APPLICATION • Reason for Loan • Personal Identification Information • Employment Information • Mortgage/Rental Information • Documentation Required (for some applications) • Current Debts • Credit References • Collateral (for some applications) • Bank References • Signature and Date15 Slide 4 – Parts of a Credit Application Lesson Reference: Credit, Activity 3 – Handout 3
  16. 16. SAMPLE CREDIT APPLICATION16 Slide 5 – Sample Credit Application Lesson Reference: Credit, Activity 3 – Handout 3
  17. 17. QUESTIONS TO ASK WHEN APPLYING FOR CREDIT 1. What is the annual fee? 2. What is the annual percentage rate (APR) ? 3. When are payments due? 4. What is the minimum payment required each month? 5. Is there a grace period? 6. Are there other fees associated with the credit, such as minimum finance charges? 7. What is the credit limit? 8. What are the penalties for late or missed payments ? 9. What are the terms and conditions of the credit? What else is included in the fine print?17 Slide 6 – Questions to Ask Lesson Reference: Credit, Activity 3 – Handout 5
  18. 18. ACTIVITY 4 Maintaining Good Credit Overview • Debt to income thermometer • Credit process • Credit reporting agencies • Credit safeguards for consumers • Credit reports, ratings and scores • Establishing a credit history18 Credit - Activity 4
  19. 19. DEBT-TO-INCOME THERMOMETER Slide 1 – Debt-to-Income Thermometer19 Lesson Reference: Credit, Activity 4 – Overhead 1
  20. 20. THE CREDIT PROCESS CREDIT HISTORY • CREDIT BUREAU • CREDIT REPORT • CREDIT SCORE • CREDIT RATING Slide 2 - The Credit Process20 Lesson Reference: Credit, Activity 4 – Overhead 2
  21. 21. SAMPLE CREDIT REPORT Slide 3 – Sample Credit Report21 Lesson Reference: Credit, Activity 4 – Handout 2
  22. 22. CREDIT SAFEGUARDS FOR CONSUMERS Truth In Lending Act Fair Credit Reporting Act Equal Credit Opportunity Act Fair Credit Billing Act Fair Debt Collection Practices Act Slide 4 - Credit Safeguards for Consumers22 Lesson Reference: Credit, Activity 4 – Handout 3
  23. 23. THE FAIR AND ACCURATE CREDIT TRANSACTION ACT One of the primary objectives behind the Fair and Accurate Credit Transaction Act (the FACT Act) is to help consumers fight the growing crime of identity theft. The following are some highlights of the Act. • Free credit reports • Fraud alerts and Active Duty alerts • Truncation: credit cards, debit cards, Social Security Number • Red flags • Disposal of consumer reports • Credit scores23 Slide 5 – FACT Act Lesson Reference: Credit, Activity 4 – Handout 4
  24. 24. THINGS TO DO TO ESTABLISH AND MAINTAIN GOOD CREDIT What can everyone do to establish and maintain good credit? 1. Pay all bills on time. 2. Avoid late fees. 3. 4. 5. 6.24 Slide 6 - Things to Establish Good Credit Lesson Reference: Credit, Activity 4 – Overhead 3
  25. 25. ACTIVITY 5 Credit Cards Overview • Types of credit cards • Shopping for a credit card • Costs of credit25 Credit - Activity 5
  26. 26. TYPES OF CREDIT CARDS Private Label • Issued by a single source • Can only be used at a single source • Examples: Department Stores, Gasoline Companies General Label • Issued by a single source • Can be used in many places • Examples: Bank Card, Major Credit Card Slide 1 - Types of Credit Cards26 Lesson Reference: Credit, Activity 5 – Overhead 1
  27. 27. SHOPPING FOR A CREDIT CARD DECISIONS, DECISIONS... ANNUAL FEE? APR? COMPUTATION METHOD? GRACE PERIOD? FINANCE CHARGE? CREDIT LIMIT? CARD INCENTIVES?27 Slide 2 - Shopping for a Credit Card Lesson Reference: Credit, Activity 5 – Overhead 2
  28. 28. QUESTIONS TO ASK WHEN SHOPPING FOR A CREDIT CARD • Annual fee • Annual percentage rate (APR) • Minimum payment • Computation method • Grace period • Finance charges • Card incentives28 Slide 3 – Questions to Ask Lesson Reference: Credit, Activity 5 – Handout 1
  29. 29. COSTS OF CREDIT How much can credit cost? If you make only the minimum payment for an item, here are some examples of what you might actually pay and how long it will take you to pay it.29 Slide 4 – Costs of Credit Lesson Reference: Credit, Activity 5 – Handout 2
  30. 30. ACTIVITY 6 Managing Credit Challenges Overview • Warning signs of credit abuse • Credit card reductions • Correcting credit errors • Resources and assistance30 Credit - Activity 6
  31. 31. MEASURING THE SERIOUSNESS OF CREDIT TROUBLE SIGNS Rate how serious you think each of the following trouble signs is. 1 = Not Serious 4 = Very Serious Trouble Signs • Delinquent Payments • Lien • Default Notices • Garnishment • Repossessions • Others? • Collection Agencies31 Slide 1 – Rating Trouble Signs Lesson Reference: Credit, Activity 6 – Handout 1
  32. 32. WARNING SIGNS OF DEBT PROBLEMS 1. Delinquent Payments 2. Default Notices 3. Repossessions 4. Collection Agencies 5. Judgment Lien 6. Garnishment32 Slide 2 – Warning Signs Lesson Reference: Credit, Activity 6 – Handout 2
  33. 33. CREDIT CARD REDUCTIONS Paying only the minimum payments on your credit card may seem appealing, but if only minimum payments are made, it can take years, and sometimes decades, to achieve full repayment. Paying the minimum amount due keeps your credit history clean, but it also costs you more.33 Slide 3 – Credit Card Reductions Lesson Reference: Credit, Activity 6 – Handout 3
  34. 34. CORRECTING CREDIT ERRORS 1. Circle the incorrect items on your credit report. 2. Write a letter to the reporting agency, telling them which information you think is inaccurate. Provide supporting documentation. 3. Send all materials by certified mail. 4. Send a similar letter to the creditor whose reports you disagree with. 5. The reporting agency will conduct an investigation. 6. If negative information is accurate, it can stay on your report for 7-10 years.34 Slide 4 – Correcting Credit Errors Lesson Reference: Credit, Activity 6 – Handout 4
  35. 35. CORRECTING CREDIT PROBLEMS • Take responsibility for actions. • Communicate with creditors. • Debt Consolidation • Credit Counseling • Bankruptcy35 Slide 5 – Correcting Credit Problems Lesson Reference: Credit, Activity 6 – Handout 5
  36. 36. ACTIVITY 7 Identity Theft Overview • The growing problem of identity theft and how it occurs • Strategies to protect your personal information • Steps to take if your identity has been stolen.36 Credit - Activity 7
  37. 37. IDENTITY THEFT Identity theft occurs when someone uses your personal identifying information to either establish credit under your name or to take over an existing account that you established without your authorization. This information may include: • Social Security Numbers • Mother’s maiden name • Name • Passwords • Address • PINs • Date of birth37 Slide 1 – Identity Theft Lesson Reference: Credit, Activity 7 – Overhead 1
  38. 38. HOW TO AVOID IDENTITY THEFT 1. Monitor your credit report. 2. Don’t give out personal information to unknown persons or companies. 3. Protect your credit and debit cards. 4. Protect your mailbox. 5. Protect your wallet. 6. Use passwords and PINs that can’t be easily guessed. 7. Use anti-virus software on your computer. 8. Notify your bank when you change your address or phone number. 9. Other suggestions?38 Slide 2 – How to Avoid Identity Theft Lesson Reference: Credit, Activity 7 – Handout 2
  39. 39. WHAT TO DO IF YOUR IDENTITY HAS BEEN STOLEN If you think your identity has been stolen, take the following steps: major credit bureaus • Contact the three (Equifax, Experian, and Trans Union). • Close accounts. • Contact all creditors involved. • File a police report. • Keep a record of your contacts.39 Slide 3 – What to Do Lesson Reference: Credit, Activity 7 – Overhead 2
  40. 40. ACTIVITY 8 Prime and Subprime Lending Overview • Subprime and prime lending definitions • Alternative institutions that provide higher-cost loans • Strategies to improve credit in order to qualify for prime loans.40 Credit - Activity 8
  41. 41. PRIME AND SUBPRIME MORTGAGE LENDING Prime Prime credit is typically available to an individual who has paid his or her outstanding credit on time. Subprime A subprime loan is typically available to a person with either no credit history or a damaged credit history and who is considered to be a high-risk borrower. Subprime loans have higher-than-average interest rates.41 Slide 1 – Prime and Subprime Lending Lesson Reference: Credit, Activity 8 – Overhead 1
  42. 42. THE PRICE OF SUBPRIME LENDING How much does a subprime loan cost you? If you are making payments on a car, for example, you could be paying significantly more just for getting a loan with a higher interest rate. This added interest is significant over the life of the loan.42 Slide 2 – The Price of Subprime Lending Lesson Reference: Credit, Activity 8 – Handout 1
  43. 43. MOVING FROM SUBPRIME TO PRIME If you currently have a lower credit score and want to be able to qualify for prime loans in the future, you should take steps to improve your credit. The following steps can help. • Pay bills on time. • Correct mistakes. • Pay more than the minimum required. • Use credit sparingly. • Work with a reputable nonprofit credit counseling organization.43 Slide 3 – Moving from Subprime to Prime Lesson Reference: Credit, Activity 8 – Handout 2
  44. 44. ACTIVITY 9 Predatory Lending Overview • Characteristics and warning signs of predatory lending. • The key targets of predatory lending. • Common abuses and scams. • Nonprofit organizations that can help consumers plagued by predatory lending.44 Credit - Activity 9
  45. 45. PREDATORY LENDING In communities across America, people are losing their homes and their investments because of predatory lenders, corrupt appraisers, mortgage brokers, and home improvement contractors who: • Sell properties for much more than they are worth, using false appraisals. • Encourage borrowers to lie about their income, expenses, or cash available for down payments in order to get a loan. • Knowingly lend more money than a borrower can afford to repay. • And many other scams.45 Slide 1 – Predatory Lending Lesson Reference: Credit, Activity 9 – Overhead 1
  46. 46. IDENTIFYING PREDATORY LENDING Predatory lending is not defined by federal law except to the extent that a loan is a high-cost loan and contains one of a fixed list of terms or conditions. Predatory or abusive lending practices can include: • Packaging a loan with single-premium credit insurance products • Repeatedly refinancing a loan in a short period of time • Charging excessive rates and fees to a borrower who qualifies for lower rates and fees46 Slide 2 – Predatory Lending Lesson Reference: Credit, Activity 9 – Handout 1
  47. 47. TEN WARNING SIGNS OF PREDATORY MORTGAGES 1. Unreasonably high interest rates 2. Multiple refinancing 3. Unnecessary debt consolidation 4. Balloon payment 5. Negative amortization 6. Door-to-door solicitation 7. Back-dating of documents 8. Large loan broker fees 9. Kickbacks between lender and broker 10. Single-premium credit life insurance47 Slide 3 – Ten Warning Signs Lesson Reference: Credit, Activity 9 – Handout 1
  48. 48. COMMON SCAMS • Advance fee schemes • The prize that will cost you • Online auctions • Fraud jobs • Moneymaking schemes • Bogus charities • Scam schools48 Slide 4 – Common Scams Lesson Reference: Credit, Activity 9 – Handout 2
  49. 49. TOP STRATEGIES TO AVOID SCAMS • Don’t become a victim. • Investigate strangers who have deals too good to be true. • Always stay in charge of your money. • Don’t be fooled by appearances. • Watch out for salespeople who prey on fears. • Monitor your investments. • Report fraud or abuse. • Do your homework. • Be wary of door-to-door solicitations.49 Slide 5 – Top Strategies to Avoid Scams Lesson Reference: Credit, Activity 9 – Handout 2
  50. 50. ADDITIONAL RESOURCES • Department of Housing and Urban Development (HUD) — Office of Consumer and Regulatory Affairs, Interstate Land Sales/RESPA Division. (202) 708-4560; www.hud.gov/complaints/landsales.cfm. • Federal Deposit Insurance Corporation (FDIC) — Consumer Affairs Division. (877) ASK-FDIC (925-4618); www.fdic.gov. • Federal Trade Commission (For federal lending violations involving mortgage and consumer finance companies.) (877) FTC-HELP (382-4357); TTY (202) 326-2502; www.ftc.gov. • Federal Reserve Board of Governors of the Federal Reserve System — Division of Consumer Affairs. (202) 452-3693; www.federalreserve.gov/pubs/complaints.50 Slide 6 – Additional Resources Lesson Reference: Credit, Activity 9 – Handout 3
  51. 51. ACTIVITY 10 Bankruptcy Overview • Chapter 7, 11, and 13 bankruptcies • Provisions of the new bankruptcy legislation • The credit counseling component of the new law • Strategies to avoid bankruptcy51 Credit - Activity 10
  52. 52. BANKRUPTCY Chapter 7 wipes out all allowable debts and allows certain personal property exemptions. Chapter 13 is a court-approved repayment plan. Chapter 11 is typically used for business bankruptcies.52 Slide 1 – Bankruptcy Lesson Reference: Credit, Activity 10 – Overhead 1
  53. 53. NEW PROVISIONS OF THE BANKRUPTCY LAW • A test to determine eligibility to file bankruptcy • Determining what you can afford to pay • Tougher homestead exemptions • Lawyer liability • Credit counseling and money management • New debt may not be discharged. • Quicker collections process53 Slide 2 – Provisions of the Bankruptcy Law Lesson Reference: Credit, Activity 10 – Handout 1
  54. 54. THINGS TO CONSIDER BEFORE FILING FOR BANKRUPTCY • A bankruptcy filing could determine whether or not you get a job. • Your insurance rates could rise. • You may find it difficult to rent an apartment or qualify for a home loan. • Bankruptcies stay on your credit report for 10 years. • Bankruptcy can lower your credit score.54 Slide 3 – Things to Consider Lesson Reference: Credit, Activity 10 – Overhead 2
  55. 55. THINGS TO DO BEFORE DECIDING TO FILE BANKRUPTCY, CONT. • Reduce your spending • Talk with your creditors. • Talk with a nonprofit counseling agency. • Talk with an attorney and understand the consequences of declaring bankruptcy. • Consider consolidation carefully.55 Slide 4 – Things to Do Lesson Reference: Credit, Activity 10 – Handout 2
  56. 56. TIPS TO REMEMBER • Keep track of your daily expenses. • Save money on a regular basis. • Make changes right away if you see yourself starting to get into financial trouble. • Pay attention to your household finances, especially if you are married.56 Slide 5 – Tips to Remember Lesson Reference: Credit, Activity 10 – Handout 2

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