Warning about debt and rising interest rates

The Money Advice and Budgeting Service has reportedly warned that many people could find themselves struggling to make ends meet in the event of further interest-rate rises.

Reports this morning said a significant number of people seeking help from the service were earning more than the average industrial wage of €30,000.

Some of these people are reportedly being forced to cut back on food and heat because they are struggling with repayments on mortgages and personal loans.

The Central Bank has been warning for several months about the high levels of debt in Ireland and the effect this could have in the event of an economic slowdown.

This morning's reports said the MABS was now warning that expected increases in interest rates during the rest of this year could leave many people unable to meet their day-to-day living expenses.