More people in grip of poverty trap

DEPRESSING evidence of insidious poverty is reflected in the latest report from the body established to help people escape the clutches of moneylenders.

According to MABS (Money, Advice and Budgetary Services) a growing number of failed small business owners and people in jobs are now seeking its help.

Statistics issued by its Cork office depict a grim picture, which is mirrored throughout the country. They show 20% more people were in financial difficulty last year compared to 2001. In some cases, debts amounted to €60,000, but the average was around €15,000.

In many cases, those availing of MABS have over-extended themselves on credit cards and on loans from financial institutions. But it is indeed a sign of the times when a service set up originally to save social welfare recipients from the grasp of ruthless moneylenders is increasingly called upon to help people, including self-employed contractors, whose businesses have become victims of Ireland’s economic difficulties.