LEARNING MODULE 08 Logo of TVET Provider TVET-PROGRAMME TITLE: Accounting

and Finance -Level II

MODULE TITLE: Developing Understanding of Debt and Consumer Credit

MODULE CODE: LSA ACF2 M08 0322

NOMINAL DURATION: 100 Hours

MODULE DESCRIPTION: This module covers performance outcomes, skills and knowledge
required to understand the functions and implications of different forms of credit and the
strategies and methods to make appropriate and effective decisions regarding the management of
personal debt and the use of credit facilities..

LEARNING OUTCOMES At the end of the module the trainee will be able to:

LO1. Identify and discuss the role of credit in society

LO2. Identify and discuss the range of credit options available

LO3. Identify and discuss costs of using credit

LO4. Analyze and discuss the effective use of consumer credit

LO5. Manage personal credit rating and history

MODULE CONTENTS:

LO1. Identify and discuss the role of credit in society (20hr)

1.1. Discussing the concepts and terminology of credit

1.2. Identifying the historical and current role of consumer credit

1.3. Discussing the advantages and disadvantages of credit use

1.4. Discussing the impact of consumer debt on the national economy

LO2. Identify and discuss the range of credit options available (15hr)

2.1. Comparing the types of credit facilities used by business and individuals

2.2. Discussing the differences between unsecured and secured loans

2.3. Explaining implications of default on secured loans

LO3. Identify and discuss costs of using credit (25hr)

3.1.Comparing Fees, costs and profit

3.2. Analyzing non-interest bearing loan (consider Islamic Bank)

3.3. Comparing the features and associated risks of fixed versus variable interest rates

3.4. Discussing ways to compare advertised interest rate

LO4. Analyze and discuss the effective use of consumer credit (20hr)

4.1. Discussing ways to avoid excessive or unmanageable deb