Title: Identify strategies for effective debt management, including sources of assistance.
Course: Personal Finance (19262-II) > Section: Demonstrating Knowledge of Credit and Loan Functions

Identification should include strategies such as

- budgeting to live within one’s means
- maintaining a record-keeping system
- avoiding penalties
- using early payoff, if advantageous
- avoiding debt problems (e.g., liens, foreclosures, garnishments, repossessions, evictions)
- using the high interest rate method for paying down debt
- understanding the implications of credit forgiveness
- understanding appropriate uses of debt consolidation loans.

Identification should include sources of assistance such as

- guidelines distinguishing between legitimate credit denial vs. discrimination
- the right to appeal a credit denial
- laws that can protect consumers who have credit problems
- ramifications of personal bankruptcy laws
- credit counseling services, credit apps, and commercial debt-adjustment firms that can help clients address credit problems, manage debt, and rebuild credit.