This document provides an overview of consumer credit, including the advantages and disadvantages of using credit, different types of credit sources and loans, how to apply for and protect your credit, and how to manage debts. The key topics covered are types of consumer credit, calculating interest rates and costs of credit, choosing credit cards, applying for loans, maintaining good credit, and dealing with debt issues through credit counseling or bankruptcy.

1. Consumer Credit Chapter 5

3. Lesson 1 What is consumer credit?

9. Lesson 2 Types of Credit

11. Lesson 3 Sources of Credit

15. Lesson 4 Applying for Credit

17. General Rules of Credit Capacity * Not including house payment which is a long-term liability Debt Payments-to-Income Ratio 6-13 Consumer credit payments should not exceed a max of 20% of your net income. monthly payments * net monthly income

18. General Rules of Credit Capacity Debt To Equity Ratio total liabilities net worth * = Should be < 1 *Excluding home value 6-14 (Continued)

22. Lesson 5 The Costs of Credit

30. Lesson 6 Protecting Your Credit

37. Lesson 7 Complaining About Consumer Credit

46. Lesson 8 Managing Your Debts