In Trouble – Dealing with Financial Difficulties

In this lesson students will become aware of the warning signs of financial difficulties.

Teaching Objectives:

  • Describe some of the ways you can get in trouble using credit
  • Explain the first steps to take if you can’t pay your bills on time
  • Describe the debt management services provided by nonprofit credit counseling centers
  • List some of the promises made by “credit repair” companies
  • Understand how to evaluate a “credit repair” company before deciding whether or not to use its services
  • Understand the protections provided by the Fair Debt Collection Practices Act
  • List and understand the wage garnishment and repossession rights of creditors
  • Understand the difference between straight bankruptcy and the wage-earner plan
  • Understand the disadvantages of using bankruptcy as a solution to debt
  • List the ten types of debt that are not affected by bankruptcy


Suggested Grade Level

7th Grade – 12th Grade

Lesson Excerpt:

The material in this lesson will help students become aware of the warning signs of financial difficulties.

When difficulties arise, students should first contact their creditors. Next, efforts should be made to revise spending patterns. In addition, assistance from a member of the National Foundation for Consumer Credit service agencies might be considered.

What if these actions do not help? In the next sections of the lesson, students will examine other actions that might be considered, such as debt consolidation loans and bankruptcy. Students should also be aware of fair debt collection practices and wage garnishment.


Teacher’s Guide

Teacher’s Guide


Presentation Slides

Presentation PDF

Presentation PowerPoint


Student Activities:

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For additional related lessons, explore our main category pages:

Categories Spending Money,

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