Unit of competency Outline

Date retreived
22/07/2026 7:44 PM AWST

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Develop knowledge of debt and consumer credit

Develop knowledge of debt and consumer credit

Unit of competency
National Code
FNSFLT203
State Code
AUQ88
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
25/03/2015
View on TGA
State Implementation and Classification
Approved Date
16/09/2015
Field of Education
080101 - Accounting
Original Release Date
16/09/2015
Nominal Hours
25
Description
This unit describes the skills and knowledge required to understand the functions and implications of different forms of credit, and the strategies and methods to make appropriate and effective decisions regarding management of personal debt and use of credit facilities. It has wide application and may be used in workplaces, schools, adult and community learning organisations or registered training organisations to build the financial literacy of learners. The unit may also be used as part of pre-vocational or new apprenticeship programs, or as part of services provided by counselling or advisory organisations.It applies to individuals who explore new ideas and techniques to build personal financial literacy knowledge.No licensing, legislative or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Identify and discuss role of credit in society
  • 1.1 Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower
  • 1.2 Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use
  • 1.3 Discuss impact of consumer debt on national economy
2. Identify and discuss range of credit options available
  • 2.1 Identify and compare types of credit facilities used by businesses
  • 2.2 Identify and compare types of credit facilities used by individuals
  • 2.3 Identify and discuss differences between unsecured and secured loans
  • 2.4 Explain implications of default on secured loans to borrower
3. Identify and compare costs of using credit
  • 3.1 Compare fees and costs associated with different types of credit options
  • 3.2 Compare features and associated risks of fixed versus variable interest rates
  • 3.3 Identify ways to compare advertised interest rates and effects of fees and charges
4. Identify and discuss effective use of consumer credit
  • 4.1 Identify and discuss ways to avoid excessive or unmanageable debt
  • 4.2 List strategies to minimise fees on credit
  • 4.3 Discuss importance of meeting minimum payments on credit cards
  • 4.4 Identify and discuss ways to avoid credit card fraud
5. Explain personal credit rating and history
  • 5.1 Describe role of credit reference agencies
  • 5.2 Explain purpose and use of credit reference reports in assessing loan applications
  • 5.3 Identify and discuss implications of establishing a poor credit history
  • 5.4 Describe methods of obtaining own credit reference report and discuss right to access the report
No information
No information
Replaces
State Code National Code Title Type
D4111 FNSFLT203A Develop understanding of debt and consumer credit Unit of competency
Replaced By
State Code National Code Title Type
OCZ59 FNSFLT213 Develop knowledge of debt and consumer credit Unit of competency