Credit & Debt Synopsis
FINA2210:
Financial Planning Principles & Insurance
Credit &
Debt Synopsis
The use of credit and consumer
debt in the
PURPOSE: The
purpose of the Credit and Debt Worksheet is to identify the important factors
associated with credit and credit use, discuss how to recognize a client who is
currently experiencing or may encounter problems with debt that will impact
his/her financial wellness.
PARAMETERS: To be considered for a grade, this assignment must meet the following criteria:
(1) Based on your review of the
text material and various online resources, construct a synopsis answering the
questions listed below. The text books do not have enough information for
you to be able to complete this assignment, You will need to conduct
research online for the material which is not found in the text books.
(2) Fully and completely answer each question.
Assessment will be based on the thoroughness of your response.
(3) You do not have to use the APA format when completing this assignment.
(4) You are expected to practice and adhere to the United States Copyright Laws. Further information can be found at http://www.mccneb.edu/library/Copyright/copyright.htm . You are encouraged to review this information before using any information for course assignments or activities. All submitted work is subject to verification of originality utilizing various academic support tools (Tunitin.com, etc.). As a student participant in this class, you tacitly agree to abide by the principles and standards proscribed in the Metropolitan Community College Financial Planning Program Statement of Academic Integrity. Violation of any of these tenets warrants consideration for immediate suspension and/or dismissal from the program.
(5) Your finished assignment (estimated length - 10 pages) should have a cover sheet which includes the following information:
Your Name
Assignment Title
Date Submitted
(6) Your finished assignment should be submitted via email to the instructor.
| Section 1: Credit Basics |
| What is credit? |
| Explain the cost of credit (both real cost and opportunity cost). |
| Discuss the difference between a secured an unsecured debt. Be sure to provide examples. |
| What is a Pay Day Lender? How do these types of lenders make a profit? Locate and identify the closest pay day lender to your place of residence. |
| What are credit repair services? How do these types of businesses work? |
| Section 2: The Credit Report |
| How does someone obtain a copy of his/her credit report (be specific)? Is there a cost associated with obtaining this report (be sure to explain your answer)? |
| What is the role and purpose of credit bureaus? |
| Who can access your credit report? |
| What types of information is collected by credit bureaus? |
| How long can negative information remain on your credit file? |
| Section 3: The Credit Score |
| What is a credit score? |
| What is considered to be a good credit score? (provide a number) |
| What factors are used when calculating a credit score? |
| What factor is the most important determination of a credit score? |
| How can the average person obtain his/her credit score? |
| Section
4: Credit Laws Briefly explain each of the following laws as they relate to the consumer, creditor and the collector of credit. |
| Equal Credit |
| Electronic Funds Transfer Act |
| Truth-in-Lending Act |
| Fair Credit Billing Act |
| Fair Credit Reporting Act |
| Fair Debt Collection Practices Act |
| Section 5: Debt |
| What are the tax implications of a forgiven debt? |
| Explain if/when a person can be jailed for not paying his/her debts. |
| What is a wage garnishment? Explain the conditions under which a person’s wages may be garnished. |
| Explain the two primary types of bankruptcy and how each differ. |
| What debts cannot be discharged in bankruptcy? |
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Community College Financial Planning Program
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