£6000 Debt Grew To £116 000
If you don’t repay a loan, and a lot of time passes, the debt can grow to unmanageable proportions, as happened to an unfortunate borrower in Manchester in the United Kingdom.
A grandmother has been forced to put her house up for sale after she ended up owing a massive £116 000—on a £6000 loan. Esther Osei, 57, borrowed the money in 1988 to pay for her father’s funeral and to buy a new cooker for her Clayton home.
But she could not meet the cost of the loan and 18 years later, the amount she owed had grown to £116 000 … Esther said: ‘I borrowed the money when I was grieving for my father. I just signed the papers.’
When the lender applied to take possession of her home, Esther sought help by going to the North Manchester Law Centre. Lawyers negotiated a deal at Manchester County Court . . . A law centre spokesperson said Esther should never have entered into the loan agreement. ‘It was a very high rate of interest.’
Required:Based on the above case study, prepare a report (or essay) that highlights the main issues. You can refer to other sources including the textbook.
Word limit: 1,500-2,000 (excluding references)
Format: Use a few headings to organise your report/essay. Abstract or executive summary is not required. You may use 2-5 relevant references.
Due date: Must be submitted by SafeAssign on or before Friday Week 6 by 5pm QLD time.
Note: The essay MUST be written in your own words. All assignments are automatically checked for plagiarism.
Start thinking about this assignment ASAP. Please do not wait till the last minute. This will help you submit your assignment on time and you would not have to ask for extension which will also delay my work. Good essays cannot be written quickly and it makes sense to complete a draft and take a break from it (work on other assignments) and then review your own work (read it as if you have not written it to see if it says what you are really trying to say) and improve. After a few iterations you would have completed a good essay.
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It is a relatively straight forward assignment so start working. Just worrying would not help.
In overall terms, your essay should demonstrate a good understanding of the relevant concepts.
The key marking criteria
Structure: Logical structure, well written, concise and clear arguments and appropriate referencing (20%)
Analysis: In-depth analysis of the relevant issues. Analysis must be based on relevant concepts. Use examples/graphs if and where appropriate. Evidence of some independent and highly relevant research (i.e., you have gone beyond just the text book material (60%).
Conclusion and recommendations: This section must be based on your analysis (20%).