Lesson
Debt Recovery
Summary
Getting out of debt isn't just about the math—it's about matching a strategy to how your brain actually works. This lesson explores the snowball and avalanche methods and how each balances numbers against human behavior.
Bellringer: Who Do You Pay First?
- Read the four-friends scenario aloud; give students one minute to decide.
- Poll the room: pay the $10 back first, or the $100 first?
Instruction
- Introduce the debt snowball—smallest balance first.
- Introduce the debt avalanche—highest interest rate first.
- Frame the trade-off: psychological wins vs. mathematical efficiency.
Discussion: Debt Slayer Strategies
- Split into teams; build snowball and avalanche attack lists for Marcus.
- Reveal solutions, then repeat for Elena.
- Highlight that each borrower's debts stay the same but the order of attack—and the path to $0—changes with the strategy.
Activity: Managing Debt Article
- Read "How to Manage Your Debt" and answer the good-debt vs. bad-debt question.
- Compare snowball and avalanche as described in the text.
- Identify one hidden trap among consolidation loans, negotiating payments, or 401(k) borrowing.
Wrap-Up & Assessment
- Why might a borrower choose the debt snowball method even if it doesn't save them the most money in interest charges?
- When does the debt avalanche method save more money than the debt snowball?
| Est. Time | Activity | Description |
|---|---|---|
| 5 min | Bellringer: Who Do You Pay First? |
|
| 10 min | Instruction |
|
| 10 min | Discussion: Debt Slayer Strategies |
|
| 15 min | Activity: Managing Debt Article |
|
| 5 min | Wrap-Up & Assessment |
|
Lesson Prep
How to Manage Your Debt: Strategies & Tools
Debt is a complex issue and solutions aren’t one-size-fits-all. Discover how to start managing your debt with these tips and tools.
Class Presentation
Includes a 17-slide deck with teacher notes. Present from Banzai, download a PDF, or copy it to Google Slides.
Presentations, Ready to Go
- Built-in PresentationPresent full screen, straight from Banzai
- Copy to Google SlidesMake an editable copy for your class
- Download or PrintSave as a PDF or print
- Teacher NotesSlide-by-slide guidance, printable as one handout
Unit 6: Credit & Borrowing
Credit Scores 101
A credit score isn't a vanity number—it's a price tag lenders attach to your reliability. This lesson breaks down the FICO® formula, hard vs. soft inquiries, and the surprising places a low score can quietly cost you.
Good Debt vs Bad Debt
Debt isn't automatically good or bad. The same $400 loan can build wealth or destroy it. This lesson explores how borrowing gets classified as good or bad, and why predatory lenders turn urgent needs into inescapable traps.
Debt Recovery
Getting out of debt isn't just about the math—it's about matching a strategy to how your brain actually works. This lesson explores the snowball and avalanche methods and how each balances numbers against human behavior.
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