Debt

Setting the Scene

Rachel is 17 and has a part-time job and allowance to pay for her extensive social life -cinema, eating out with friends, and going to the latest gigs.

She also uses her earnings to pay for clothes as she loves the latest 'it' fashion items, as well as her favourite music CDs.


The Dilemma

Recently, Rachel had the opportunity to attend a major pop concert, but was a little short of cash. The cost of the concert and travel meant that she had to borrow money from friends to pay for the event.

She was reluctant to do this but her friends persuaded her as they really wanted her to come. Having had her fun, Rachel now finds that she has borrowed more from her friends than she can afford to pay back as agreed.

Questions

  1. How would you characterise Rachel's behaviour?
  2. What do you think would happen if Rachel told her friends that she was unable to pay them back for quite some time?
  3. Do you think Rachel is to blame for poor debt management, or are her friends guilty of “putting temptation in harm’s way”?
  4. What options are available to Rachel now?


Discussion Points

(How would these further facts affect your judgement)

  • Rachel has borrowed on credit cards and is falling behind in her payments.
  • Rachel has approached a different set of friends for more money as she really wants to take advantage of some upcoming sales.
  • Rachel is constantly lending her friends money - they all behave in the same way.