Coping with debt - Ask for help before crisis

THE Money Advice and Budgeting Service (MABS) stands between some of the worst consequences of the recession and the tens of thousands of people forced to accept a new reality because they have lost a job or have had their pay cut.

Last year the agency dealt with people whose total debt reached €205 million, 60% of which was due to various banks. The average debt was €12,400 and the majority of new clients — 59% — were dependent on social welfare. The obvious questions about how responsible it is to lend money to people on such limited incomes arises but nevertheless people in dire circumstances must get all the help the agency can offer them.

So many younger people, unused to having to defer even the slightest whim, will find our new reality difficult. This reality might become even more difficult if hard decisions are deferred.

The agency warns that it is unwise not to confront the difficulties as soon as they arise. Allowing debt to spiral out of control can only make a bad situation worse. If you need to ask for help do so early rather than later.