The movie our class watched was about credit and credit management. What first was mentioned was the fact that people need to find out how the credit system actually works. People need to understand that credit is not "extra money." It is borrowed money in which the borrower claims that they will pay back the debt plus an interest amount also. Also mentioned at the beginning of the movie while talking about what credit is was the "Gotta Get It" attitude of credit card misuse. Credit cards are not used for impulse buying that leads into overspending. Credit cards should be used knowledgably and with extreme care.

The video also talked about a credit record. A credit record contains the history of someone's credit purchases and how well they paid back the debts. Credit records also has personal information about the person including the name, mailing address, and phone number. Credit records contain the person's credit account information as well, including the company which issues the credit and the account number. Credit records are closely in relation with the 3 C's of credit: collateral, capacity, and character. Collateral is what you own that can be used as repossession incase payments cannot be made. Capacity is how well someone is able to pay back the debts they owe. Character is personal characteristics including their trustworthiness.

The movie also talked about charge accounts and credit accounts and their difference. Charge accounts are accounts where the payment at the end of a month would be the entire balance. Examples of charge accounts would be The Diner's Club and American Express. Credit accounts are accounts where the payment at the end of a month would only be a minimum payment of the total balance. Examples of a credit account would be MasterCard and Visa. Finally the movie talked about how to deal with debt. You need to meet your debt face to face and communicate with your creditors. You need to negotiate with them on smaller monthly payments over longer periods of time. You should keep a record of your spending, pay payments before spending more, and make more than the minimum payment on your credit card to all help deal with your debts and make your credit situation better.