Managing Debt
From Open Risk Manual
Definition
Managing Debt. In the context of the Financial Competence Framework, Managing Debt is a topic in the Planning And Managing Finances subject matter domain.[1]
Competences
Mastering the role of Managing Debt in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 332 | Understands the potential burden of being indebted | Knowledge |
| 333 | Recognises the relationship between current debt levels and financial well-being now and in the future | Knowledge |
| 334 | Knows how to manage debt repayments | Knowledge |
| 335 | Understands why it is important to manage the ratio of [household or individual] debt to income | Knowledge |
| 336 | Understands the implications on credit scores of failing to pay debts | Knowledge |
| 337 | Takes early action to avoid or minimise debt problems | Skill |
| 338 | Monitors overall credit use | Skill |
| 339 | Makes an informed decision before accessing additional credit to repay current debts | Skill |
| 340 | Motivated to resolve issues related to credit before debt becomes a burden | Attitude |
| 341 | Accepts responsibility for debt and debt management | Attitude |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
