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Debt, or no Debt, that is the Question

September 27, 2017FHE Lessons


Opening Prayer

Spiritual Lesson – Debt

“If there is any one thing that will bring peace and contentment into the human heart, and into the family, it is to live within our means. And if there is any one thing that is grinding, and discouraging and disheartening it is to have debts and obligations that one cannot meet” President Heber J. Grant, May 1932

Discuss when it is acceptable to go into debt. Discuss some of the negative and positive effects of debt.

Activity – Would you give yourself a loan?

Congratulations! you just started a new credit union. Its time to apply the members helping members mentality! Credit Unions loan out members savings in order to help other members!


Cut out player cards, and pass them out. Each player must convince the rest of the group to approve their loan. The Credit Union can loan out up to $250,000, meaning you can’t approve everyone. After approving, or denying all of the players read the outcome sheet, and see how you did!

Closing Prayer


Job: Landscaper

Income: $43,000

Credit Score: 726

Debt: Student Loans-$30,000 Car Loan-$10,000

Requesting: 20,000 to start a Business



Job: Teacher

Income: $32,000

Credit Score: 632

Debt: Student Loans- 12,000 Credit Card-1,750

Requesting: $15,000 for a car



Job: Rancher

Income: $75,000

Credit Score: 702

Debt: Mortgage- $208,000

Requesting: $30,000 for 15 cattle



Job: Lawyer

Income: $160,000

Credit Score: 650

Debt: Student Loans- 190,000. Credit Card- 10,000 Requesting: 4,300 for a wedding



Job: Photographer

Income: $25,000

Credit Score: None

Debt: None

Requesting: $2,000 for new camera



Job: Fast Food

Income: $18,000

Credit Score: 602

Debt: Car Loan- $3,000 Credit Card-$500

Requesting: $1,700 for a four-wheeler



Job: Computer Programmer

Income: $65,000

Credit Score: 730

Debt: Student Loans- $40,000 Credit Card- $2,000

Requesting: 190,000 to buy a home



Job: Secretary

Income: $30,000

Credit Score: 640

Debt: Credit Card- $10,150 Requesting: $3,000 for a personal loan

Outcome Sheet

Larry: Should be Approved for his loan. This is due to his credit score, and his current income would be able to support his current debt plus, his new business loan.

Tami: Should be denied for her auto loan. This is because of a low credit score, and her auto loan is to large for her income and current debt levels.

Robert: Should be approved for his Loan. This is due to a very high debt to income ratio, and decent credit score.

James: Surprisingly enough James would be approved for his loan. This is mainly due to him having a very high income.

Sarah: Depends on the situation. The credit union would have to use alternative methods to determine Sarah’s payment history, such as talking to her landlord, or utility company. If she has paid on time with them then she could be approved.

Melissa: She Should be approved. She has a very good credit score, and a good income.

Nathan: He should be denied. This is due to his income level, current debt and credit score. He could be approved if he paid a very large portion down, and had a cosigner.

Debra: Should be denied, this is due to her credit card debt being more than 1/3rd of her income.

Good Job running your first credit union! One of the great things that credit unions offer over banks are better interest rates, because of this you can save a lot of money over the long run! That being said debt is unforgiving.

Remember, just because you are approved for a loan doesn’t mean that you should get it!

“Debt or no Debt” Lesson PDF