1.6m adults left with €50 or less each month after bills, survey reveals
The figure points to an increase, since October, of 230,000 people falling deeper into the trap of having little or no disposable income.
The 17% increase was discovered during a continuing credit union survey.
The latest results from the What’s Left tracker series by the Irish League of Credit Unions shows almost 1.6m adults have spending money of just €50 or less a month, up from 1.36m in October.
Among working adults, the figure is up from 198,000 to 267,000, a 35% increase.
Financial headaches for the Irish public are compounded by high energy prices and a tough budget, with close to half of adults (46%) struggling to pay household bills on time.
In addition, up to 70% are unable to save money and 40% scrimp on other household items, primarily food, in order to pay energy bills.
Jim Walsh, spokesman for the Society of St Vincent de Paul, said his organisation was not surprised by the figures. “Unfortunately, we expect things to get worse as people start to feel the full effects of the budget.
“Anecdotally, the number of calls for help to the society in 2012 would appear to have gone up, although final figures aren’t in yet.”
The prospect of the property tax is adding to people’s woes; 40% believe this will be the one that impacts most on personal finances. And the omens for 2013 are not good — eight in 10 fear this year will be even tougher than last year.
The independent tracker survey also found that:
*Of the three in 10 who are in a position to squirrel away money, 20% save less than €50 a month;
*Two in five have had to sacrifice spending on other household items such as food to pay energy bills;
*60% say they have €100 or less left at the end of the month once essential bills are paid;
*A quarter of savers put away €301-plus per month, well above the €180 monthly average;
*Four in 10 were forced to reduce their energy consumption to save money on escalating bill costs.
The issue of moneylending remains a concern. The December survey found a growing awareness of moneylender activity. However, despite this awareness, only 5% of the population regard moneylenders as a viable option for accessing credit.
Commenting on the *atest results, ILCU chief executive Kieron Brennan said that 18 months into its tracker series, a number of trends had emerged. “Disposable income overall continues to decrease, with 72% stating they have less disposable income in December than they did in Dec 2011.”
