The amount of money borrowed and lent each year in the United States is enormous. In fact, the nation's economy depends on individuals and groups being able to buy on credit. Chapter 4 discusses why consumers go into debt, and the types and sources of credit available.

Financial Institutions
This chapter examines the advantages and disadvantages of borrowing from the six types of financial institutions. Also covered are the three kinds of charge accounts, the characteristics of credit cards and debit cards, and the various methods of computing finance charges.

Applying for Credit
The credit application process, including the factors determining a borrower's credit rating, is also discussed. Included is a review of the differences between secured and unsecured loans and the borrowers' rights and responsibilities. The chapter concludes with a look at federal credit regulations and consumer protection legislation.