In Lesson Nine and Lesson Ten we looked at different types of loans and getting a loan.  We talked about questions to ask before borrowing to make sure you can afford any loan.  Here we look at what happens if you cannot repay a loan.  Debt is when you borrow money from someone or from a financial institution, you owe them money and have to pay it back.  Most people will have debt at some stage in their life.  Problems only occur if the debt becomes unmanageable. Problems with debt usually happen due to an unexpected change in circumstances.  For example, a person may borrow money but then a change in circumstances which they did not see coming means they have less money coming in, for example if they lose their job or a family member gets sick. In this lesson students will be asked to come up with a list of circumstances that might cause people to struggle with debt and to identify how being in debt can make people feel.

Activity One:  Didn’t see that coming

Activity Two:  Jack and Jill