Number of people looking for debt advice doubles
Figures from the Department of Social and Family Affairs (DSF) show that 24,800 people rang the helpline last year, compared with 11,000 in 2008
A total of 19,000 new clients began using MABS services for the first time last year – an increase of 15% on 2008, when 16,600 new clients signed up to MABS services.
However, the department points out that the 2009 increase is half of the 2008 increase. Between 2007 and 2008, the numbers of new clients rose by 31%
MABS statistics show that the vast majority of new clients had mortgages and were aged 26-40. Approximately one-third of the new clients were married with children.
More women rang for advice on handling debt than men, with 10,280 women becoming clients of the service compared to 8,814 men.
Statistics also reveal seven out of 10 who rang for help were on social welfare, while the remaining 31% were employed, self-employed or receiving maintenance payments.
Just 82 subprime debts were brought to MABS by new clients last year, compared to 2,584 personal loans with financial institutions. More than 1,500 utility bills were brought to MABS and 512 mortgages. Up to 1,345 credit card debts were being worked upon by MABS employees either through negotiation or the establishment of special accounts to repay the debt.
MABS clients are broken into three categories: those who just seek information, those that want help in negotiating with institutions and those who want to set up a special credit union account for saving or repaying debt.
More than 16,000 of the approximate 23,000 people using MABS services last year required help with negotiations on debt repayment while 3,868 wanted information and 2,618 had special accounts established so they could manage their debt levels.
A spokeswoman for the DSF said yesterday that 19 additional money advisers were recruited between September and December 2009 to MABS offices.
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