MORE THAN half a million Irish people either cannot pay their bills or have nothing left to spend after meeting their monthly financial commitments, according to a survey published by the Irish League of Credit Unions today.
A further one million people have “very little” money to spend on anything other than essentials after bills are taken care of, the survey found.
The level of acute financial hardship being felt across the State is revealed in the league’s final “What’s Left” spending report of 2011.
Extrapolating from its survey of 1,000 consumers, the league found that 280,000 people or 8 per cent of the population say it is impossible to cover their bills each month, while 350,000 can pay their bills but have nothing left after doing so.
Some 28 per cent of consumers told pollsters they had “very little left” each month once all their household expenses were accounted for.
According to the league, 70 per cent of consumers said they had less in their pocket when compared with 12 months previously, while 55 per cent said it was a serious struggle to pay all their bills on time. Working adults in particular were most likely to report a significant decrease in their disposable income over the past 12 months.
The survey makes for grim reading and, if those surveyed are correct, things are likely to get worse.
The umbrella group for the Republic’s credit unions found very few respondents were optimistic about their prospects for 2012, with 83 per cent expressing the belief that this year will be even more difficult financially than 2011 was.
Insurance and utilities costs are a major cause of concern for most consumers, while many also highlighted the 2 per cent VAT increase.
One of the bills many people are considering jettisoning in 2012 is private health insurance and 9 per cent of those polled said they would probably have to discontinue their policies this year.
About 6,000 people cancelled health policies each month last year, and if the findings of this survey are borne out, then more than 100,000 people will have to fall back on the public health service in 2012.
Throughout 2011, the league’s tracker index recorded how much disposable income Irish people had, where they were spending their money and the financial hardships they were facing.