Scots urged to stay away from loan sharks as this could cause further debt problems
Scots urged to stay away from loan sharks as this could cause further debt problems
- Thursday, 6 January 2011Scottish people that have overspent this Christmas have been urged to seek
debt advice from a reputable company rather than resorting to loan sharks.
Alex Neil, the housing and communities minister, stated that loan sharks tend to target the most vulnerable in society.
He warned consumers not to turn to these loan sharks as a way of clearing their
debt problems because they tend to charge extravagant rates of interest.
Some illegal loan sharks can charge as much as ten million per cent interest, Mr Neil claimed.
The minister said: "Loan sharks are a blight on civilised society bringing misery to vulnerable people experiencing severe financial hardship.
"If people are experiencing high levels of debt they should contact a reputable, professional organisation like a credit union, which can provide an affordable alternative for those with money worries."
Therefore, people who have overspent this Christmas should seek
debt help to ensure they avoid borrowing even more money.
A recent survey by first direct found that 82 per cent of UK adults regret how much loan and
credit card debt they accrued in 2010.

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