Credit union accounts to be given to all Glasgow’s teenagers

Teenagers in Glasgow are to be given credit union accounts to encourage them to learn money management and help them avoid debt and payday lenders.

The city council has said that it will deposit £10 in a credit union account for all first-year secondary school pupils next year – around 6,000 children – and will continue to do so with all new senior school entrants.  They want to encourage young people to think about saving from an early age.

The move follows research by the council that suggested poorer Glaswegians borrowed some £57m last year from high-interest, short-term lenders.  The money was used for day to day living costs as well as attempts to pay off other debts.

In further moves against payday lenders, the council said it will ban "unconventional lenders" from renting council properties and is calling on the UK and Scottish governments for more action, such as allowing councils to use planning laws to stop them spreading further in high streets and shopping arcades.

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