Credit and Debt

Credit and Debt

By Ariana Lugo

Open Ended

Have you ever borrowed money? Who did you borrow from? Did you pay it back with interest? Did you “work it off” instead of paying cash?

Open Ended

How do people you know use credit cards? Example Family, Business

Open Ended

What types of personal financial planning strategies can you follow to make sure that you can afford a loan?

Open Ended

Could an auto loan be considered a form of good debt? Explain.

Open Ended

Is getting a gift card as a reward a good reason to apply for a credit card? What are other reasons it might be good for Mario to apply for a credit card?

Open Ended

Take a guess: Why would bad credit affect Mario’s job application?

Open Ended

Caleb wants to buy a car to get to work. Some debts, such as a loan for the purchases of a car, can be considered good OR bad debt. Explain both

a. One reason why the purchase of a car may be considered bad debt.

b. One reason why the purchase of a car may be considered good debt.

Multiple Choice

Is a buying a home considered a good debt or bad debt?

• True

• False

Poll

Do yo understand the difference between good and bad debt?

• Yes

• No

• I need more examples or explanation