Schoolchildren to get money management lessons

Published: 26/02/2014

From next month children in England will soon be taught how to manage their money with the aim to prevent them from becoming victims to illegal loan sharks.

With money tight, illegal lending is sadly thriving and ultimately leaving the majority far worse off than they were originally. In one case, a borrower told to BBC Breakfast how a £200 debt spiralled to more than £6000.

But it isn’t just illegal money lenders which people must be wary of as statutory demand solicitor Andrew Watson highlights:

“While illegal loan sharks come with their own set of problems, there are also many ‘legitimate’ loan companies which can also land borrowers in hot water.

“Payday loans, which are openly advertised on TV, radio and even football jerseys, come with jaw dropping annual percentage rate (APR), typically between 1000% and 6000%. This means if you borrow £500 over a six-month period, you can end up paying back anything from £1158 to £3405 depending on the APR.

“Such a debt is a staggering amount of money for anyone and often cannot be repaid. As a result the creditor may choose to issue a statutory demand in order to recover the outstanding payment.

“Should you receive a statutory demand we may be able to help. Our team of lawyers may be able to have the debt set aside or negotiate a reduction all on a no win no fee basis.”

Content correct at time of publication