Title: Evaluate use of credit.
Course: GRADS: Family Focus (19905-36) > Section: Managing Economic Resources and Expenditures

Evaluation of credit should include

- types of credit
- advantages and disadvantages of using credit
- cost of credit
- interest-free credit
- credit rating
- debt-to-income ratio
- first-time homebuyer incentives
- identify theft
- debt management
- rent-to-own businesses.

Process/Skill Questions

Thinking

- Why may misuse of credit result in financial disaster?
- Why may a sale item purchased on credit not really be a great buy?
- How can credit be important in an emergency situation?
- What is the safety factor in using credit cards?

Communication

- What resources are available to help you understand how interest on credit cards are applied?
- Why are interest rates usually higher for revolving credit (charge cards) than installment credit obtained through banking?

Leadership

- Why don’t people usually figure out their monthly payment and compare it to their budget before they use a credit card?
- What goods and services could you purchase on sale, using credit, without affecting your budget negatively?

Management

- What is the difference between installment credit and revolving credit?
- What are the definitions of collateral and line of credit?