12 Session round-up
This session has focused on the debt product market place – the lenders, their products, their interest rate characteristics and the factors that set the level of interest rates in the economy.
You also looked at the difference between using debt sensibly, as part of your life’s plans, and debt that is irresponsible and leads to financial problems.
You should now be able to:
- understand who you can borrow from and what debt products are available
- know when borrowing is sensible and when it is reckless
- understand what determines the cost of borrowing money
- understand the ranking of debt products in terms of the interest rate charged.
In the next session you focus more closely on the factors that affect how much you can borrow and on what terms – a subject that brings you back to the credit rating agencies you first met in Session 1.
You can now go to Session 7.
If you are a teacher working with young adults, you might find this additional guidance for teachers useful.