National Guard Family Program
Soldier with child riding piggyback Introduction to Personal Finance
An Overview for State Family Program Directors, Wing Family Program Coordinators, and Families.
 

Introduction

Evaluating Your Situation

Budgeting & Debt Management

Goals & Plans

Insurance & Disability Planning

Investment Planning

Education Planning

Retirement Planning

Estate Planning

 

 

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BUDGETING AND DEBT MANAGEMENT

 

2.

Introduction

 

2.1

Why Do We Acquire Debt?

2.2

Debt Can Become a Habit

2.3

The Reality of Borrowing

2.4

The Credit Trap

  

2.4.1

Fees

2.4.2

Rates

2.4.3

Types of interest

2.5

Eliminate and Avoid Debt

2.6

Trimming Your Budget

2.7

Learning Check

 

2.4.3 Types of Interest

The Cost of Credit

As a result of the Truth in Lending Law of 1969, creditors are required to state the cost of borrowing as a dollar amount so that consumers will know exactly what the credit charges are and can compare credit costs and shop for the best rates.

Finance charge is the total dollar amount you pay to use credit. It includes interest costs and other costs such as service charges.

Annual Percentage Rate (APR) is the percentage cost (or relative cost) of credit on a yearly basis.

The APR is your key to comparing costs.

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