The debt and loans programs is designed to help individuals learn about loan interest rates, and how to manage and eliminate debt.
Debt & Loans:
Purpose & Planning
Loans allow individuals to borrow money for temporary use, typically with interest. Taking on debt has both benefits and consequences. Below is a sample of program content.
Risks of Borrowing:
- Inability to repay
- Credit score damage
- Wage garnishment
- Asset repossession
Responsibilities of Borrowing:
- Learn how leverage is used to control assets.
- Interest and credit score impact
Choosing a Loan:
- Learn key loan terms: collateral, mortgage, risk, interest rate, down payment, equity.
- Understand different types of loans:
- Balloon payment
- Fixed rate
- Variable rate
- Secured vs. unsecured loans
Loan Qualification:
- Loan terms depend on borrower’s financial profile.
- Employment status
- Credit score
- Debt-to-income ratio
- Collateral
- Non-payment affects credit score and future borrowing ability.
Loan Repayment & Management:
- Creditor negotiations
- Bankruptcy
- Short sales
- Foreclosures
- Credit counseling