Easy Access High Cost Credit
From Open Risk Manual
Definition
Easy Access High Cost Credit. In the context of the Financial Competence Framework, Easy Access High Cost Credit is a topic in the Planning And Managing Finances subject matter domain.[1]
Competences
Mastering the role of Easy Access High Cost Credit in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 325 | Aware that marketing and simplified lending processes can increase the temptation to access credit without considering the consequences, especially when credit is offered online or via mobile devices | Knowledge |
| 326 | Some vendors offer credit to incentivise buyers to make a purchase or spend more than originally planned and/or to increase future custom | Knowledge |
| 327 | Credit offers that are initially interest free may incur interest in the future | Knowledge |
| 328 | Options to ‘buy now, pay later’ [including basic utilities in many instances] typically are a form of credit and may have a cost | Knowledge |
| 329 | Takes steps to avoid over indebtedness that may result from using easy-access high-cost credit often sold online | Skill |
| 330 | Carefully considers the likelihood that interest free credit can be repaid in full before the end of the interest free period and the consequences of not doing so | Skill |
| 331 | Confident to decline unwanted credit that is offered with a purchase | Attitude |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
