Understanding Debt
GPF 201 · Module 1
This module explains how debt works, how interest is calculated, and why different debts affect your finances in different ways. Students learn how to evaluate debt without shame, understand credit scores, and avoid common mistakes that make borrowing more expensive.
Lessons in this module
How Debt and Interest Work
Debt is borrowed money that must be repaid, usually with interest. This lesson explains principal, APR, minimum payments, amortization, and why high-interest debt can grow faster than expected.
Good Debt vs. Bad Debt
Not all debt affects your finances the same way. This lesson explains productive versus harmful debt, how to evaluate borrowing decisions, and why the terms matter as much as the purpose.
How Your Credit Score Works
Your credit score estimates how risky it may be to lend you money. This lesson explains the main credit score factors, how to improve them, and why closing old credit cards can sometimes hurt.
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