Students learn about handling high levels of debt.
Teaching Objectives:
- Identify ways to deal with high levels of personal debt.
- Compare the costs and benefits of filing bankruptcy.
- Recognize the impact of filing bankruptcy.
- Explain the importance of reestablishing positive credit history.
- Demonstrate the steps to rebuilding positive credit history.
Standard 13: The student will evaluate the consequences of bankruptcy.
Suggested Grade Level
7th – 12th Grade
Lesson Excerpt:
Poor money management and overspending habits will quickly lead to high levels of debt, but that is not the only reason people face mountains of bills with little money to pay them. Events such as divorce, prolonged illness, or other personal problems can wreck a person’s budget, causing them to get behind in their payments and face difficulties playing catch up.
When faced with unfortunate circumstances or the results of poor spending habits, there are ways to resolve the problem. Some of these include filing personal bankruptcy, getting debt counseling, or refinancing personal debt. These options have both costs and benefits to individuals, their families, and others impacted by the decision.
