1. Dave needs some money to buy a new car. He is considering a car loan at his bank as well as the possibility of borrowing against the equity in his home. Distinguishbetween these two credit alternatives. What are some of the pros and cons of borrowing on your home equity?

2. Steve and Irene bring home $3,000 per month. Their car payments and credit card payments usually run $600 per month. Their total debt not counting their mortgage is $25,000. The couple's assets total $50,000, not including their house. Commenton the couple's situation. Look at pages 200 and 201.

3. Your 16 year-old daughter wants to buy a car. She has a job during the summer and on a part-time basis during the school year. She wants to borrow $5,000 and asks you to cosign. What factors should you consider in making this decision?Describe some things you can do to improve your credit score.

4. Barb applied for a loan at Last Chance National Bank and was turned down. What is the bank required to do? Assuming Barb has good credit and is baffled as to why she was turned down, what should she do? Describe some of the main features of the Fair Credit Reporting Act.

5. Al recently received his Visa bill. Al is sure that he did not make some of the charges shown on his statement. What should Al do? Discuss the main features of the Fair Credit Billing Act. Can a credit rating be harmed while this bill is in dispute? Describe some actions you can take if your identity is stole