Unit of competency Outline

Date retreived
22/07/2026 10:17 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
FNSFLT213
State Code
OCZ59
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
02/02/2021
View on TGA
State Implementation and Classification
Approved Date
22/04/2021
Field of Education
080101 - Accounting
Original Release Date
22/04/2021
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 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.The unit applies to those 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 role of credit in society
  • 1.1 Identify 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
  • 1.3 Identify advantages and disadvantages of credit use
  • 1.4 Discuss impact of consumer debt on national economy
2. Identify range of credit options available
  • 2.1 Identify and compare types of credit facilities used by businesses and by individuals
  • 2.2 Identify differences between unsecured and secured loans
  • 2.3 Identify 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 effective use of consumer credit
  • 4.1 Identify ways to avoid excessive and unmanageable debt
  • 4.2 Identify strategies to minimise fees on credit
  • 4.3 Identify effects of meeting and not meeting minimum payments on credit cards
  • 4.4 Identify ways to avoid credit card fraud
5. Review personal credit rating and history
  • 5.1 Identify role of credit reference agencies
  • 5.2 Identify purpose and use of credit reference reports in assessing loan applications
  • 5.3 Identify implications of establishing a poor credit history
  • 5.4 Describe methods of obtaining own credit reference report and identify information on right to access the report
No information
No information
Replaces
State Code National Code Title Type
AUQ88 FNSFLT203 Develop knowledge of debt and consumer credit Unit of competency