Managing Debt Wisely
How borrowing costs are calculated, why minimum payments shrink a balance slowly and how the payoff methods people often discuss actually work.
5 lessons · Estimated time: about 2.5 hours
Overview
Debt is easier to think about once the arithmetic is clear. This course explains principal, interest and APR, walks through what a credit card statement shows and describes the methods people use to organize repayment.
It teaches concepts only. It doesn't recommend a method, a product or a provider, and it doesn't look at anyone's own debts.
What you'll learn
- What principal, interest and APR mean
- How monthly interest is worked out on a balance
- Why paying only the minimum keeps a balance around longer
- How the snowball and avalanche methods differ
- Warning signs of debt-relief scams
Lesson outline
- 1. Interest, minimum payments and payoff methods Free sample
- 2. Reading a credit card statement Members
- 3. Fixed and variable rates Members
- 4. Talking with creditors about hardship Members
- 5. Spotting debt-relief scams Members
Estimated time: about 2.5 hours, in lessons of 25 to 35 minutes.
Take the whole course.
Lesson 1 of every course is a free sample. Lessons marked Members are part of the $12/month membership in this sample program.
Demonstration site: enrolling sends nothing and creates no enrollment. Courses are general education, not financial, legal or credit advice; they explain how things work and don't review anyone's situation.