Name: _________________________________
Date: ___________________
Understanding Credit and Debt
Interactive Webquest
Topic:
Credit, the credit industry, credit scores and debt.
Objective:
To understand how the credit industry operates, how to avoid debt and maintain a good credit score.
Directions:
Use the links below to access various articles and interactive charts to answer the questions that follow.
Credit and Debit Cards: What You Need To Know
http://www.nytimes.com/2009/01/06/your-money/credit-and-debit-cards/primercards.html
1. How long have credit cards been around?
2. What is the difference between debit and credit cards?
3. Describe both the benefits and disadvantages of using debit and credit cards?
Good Debt vs. Bad Debt:
https://www.debt.org/advice/good-vs-bad/
4. What is the definition of “good debt”? List some examples of good debt.
5. What is the definition of “bad debt”? List some examples of bad debt.
6. When can good debt be bad?
Average Credit Card Debt in the U.S.:
http://money.cnn.com/news/storysupplement/economy/credit_card_debt/
7. What is the average credit card debt held by consumers in N.Y. State?
8. Which state has the highest average credit card debt held by consumers?
Credit Reports:
http://www.consumer.ftc.gov/articles/0155-free-credit-reports
9. What are the three nationwide credit reporting agencies?
10. How often can you obtain a free copy of your credit report?
11. What kind of information is included in your credit report?
12. In what ways does your credit score affect you?
13. For how long can a credit reporting agency report negative reports and bankruptcy?
14. Can your employer see your credit report?
Colleges Profit As Banks Market Credit Cards to Students:
http://www.nytimes.com/2009/01/01/business/01student.html
15. How many college students have at least one credit card?
16. What was the average debt for college seniors that carried a balance?
17. What is the credit limit for college graduates capped at?
Debt Reduction Calculator:
http://www.bankrate.com/calculators/credit-cards/debt-calculator.aspx

Expand the “Credit Card Debt” section (click on the “+”)

In the “Credit Card Balance #1” section, enter the average credit card debt held by consumers in N.Y. State
(from question 7). Keep the interest rate at 18.9%
18. What would your minimum monthly payment be?

Click on “View Report”
19. How long would it take to pay off this debt?
20. What is the total interest that would be paid on this debt?