Demand for assistance grows as debt crisis worsens

Dublin South West Sinn Féin TD Seán Crowe has described as “very worrying” figures released this week from the Money Advice and Budgeting Service (MABS) that show they dealt with 7,593 new clients in the first quarter of 2012.

Deputy Crowe said: “Unprecedented numbers of people are seeking help from MABS with personal loans the biggest problem. Just as worryingly is the age profile of those seeking help with people aged between 26-40 struggling to repay mortgages, loans, utility and credit card bills.

“The figures from MABS follow on from a survey published in March which showed that   there are dozens of licensed and illegal moneylenders operating across the State that are lending money at exorbitant high rates of interest to an estimated 200,000 people.

“What these figures show is that increasing numbers of people are struggling desperately to make ends meet and the failure of the Government to stimulate the Irish economy is making matters worse. Increasing austerity measures, wage cuts, rising unemployment and increased taxes are further depressing the economy and forcing greater financial hardship on hard-pressed families.

“Perhaps unsurprisingly, the majority of those seeking assistance from MABS are on social welfare, while over 2,000 were self-employed or earning a wage.

“The 60 MABS offices operating nationwide are coming under mounting pressure to deal with the deluge of people seeking assistance. I understand that Blanchardstown in Dublin had the highest number waiting for assistance with 122 waiting on average more than two months for an appointment and in Clondalkin and Tallaght there are up to 10 month delays to see a solicitor.

“The IMF has made clear that household debt reduction policies and mortgage write-downs can result in significant economic benefits. The Government must do more to help people who are struggling in this recession which in the five years before 2007 has resulted in a ratio of household debt to income rise in advanced economies from an average of 39%, to 138%, with debt in Ireland peaking at more than 200% of household income.”