Half are just ‘living to work’ and 41% see no future in Ireland

Half the country feel they are just “living to work”, with 41% believing there is no longer a future for them or their family in Ireland, a credit union survey has found.

Disposable income is under pressure for the majority of consumers, with 63% saying the amount of money left after paying essential bills has fallen in the past 12 months. Compared to six months ago, 51% have experienced an actual fall in their disposable income.

The survey, part of the Irish League of Credit Unions ongoing disposable income tracker index, What’s Left, found:

* 28% of people cannot afford to pay the household charge;

* 46% are unable to save money;

* 45% are struggling with their car finances as a result of the increased cost of motoring;

* 40% have switched car insurance company to cut down on costs; 20% have switched to a smaller car.

Around half of those surveyed admitted to not paying their utility bills on time, with bin charges, TV licences and phone bills the most likely to be put off.

The nationwide survey of 1,000 people shows motor costs to be an area of serious concern, with 64% saying they have postponed servicing their car as they cannot afford it. Some 7% say they would consider giving up their car due to recent rises in car tax and fuel prices.

If petrol and diesel prices continue to increase, 32% of people say they will manage, but household spending will suffer. A further 10% say they would not be able to afford to keep their car. While 64% are open to using public transport, 47% said public transport options where they live are poor.

The survey also asked about the household charge. As of Mar 23, 42% said they had no intention of paying the €100 fee. Almost three in 10 (28%) homeowners will not pay as they cannot afford it, while 8% said they will hold off on paying it until they are threatened with legal action.

A new component to the research was also revealed by the Irish League of Credit Unions, which enlisted the help of four independent case studies as part of the project.

During 2012 each of the case studies will be followed through fixyourfinances.ie, tracking disposable income, financial pressures, and what the main financial concerns are each month and for the year ahead.

One of those involved is a 42-year-old professional from Dooradoyle, Co Limerick.

Dara works as an office administrator and earns €25,000, approximately €13,000 less than this time last year.

She says she has very little left at the end of each month once all the essentials are paid, but tries to save about €40 per week for a rainy day.

She believes that finding money for everyday bills like car insurance, electricity, food, and telephone is getting harder and harder and worries for the future.

Dara, who is in remission from Cushing’s disease, is extremely worried that health insurance will be out of her reach this year.