THE MAJORITY of Irish consumers are struggling to make ends meet and most are now convinced things are only going to get worse, according to the fourth and final credit union spending survey of 2011 which was published this morning.
Dramatic increases in the cost of health insurance and fuel and energy bills in particular are hitting consumers hard and hundreds of thousands of people now say they have absolutely nothing left when all their monthly household bills are paid.
The results of the Irish League of Credit Unions “What’s Left” disposable income tracker index is likely to be viewed by many as a grimly accurate portrayal of their day-to-day and increasingly hand-to-mouth existence.
Throughout 2011, the tracker index recorded how much disposable income Irish people had, where they were spending their money and the financial hardships they were facing.
As with the earlier reports, worry is a recurrent theme of the latest study with 83 per cent of those polled on this occasion expressing the fear that 2012 will be an even more difficult year financially than last year.
Nearly one in four consumers described themselves as “very worried about how they are going to manage” this year while 6 per cent said they would not be able to cope at all and had no idea what to do about their financial predicament.
The study shows that overall disposable income remains under pressure for the majority of people with 70 per cent saying the amount that they have left over after paying essential bills has fallen during the past 12 months.
Working adults in particular reported a significant fall in their disposable income last year.
Savings remain little more than an aspiration for many adults with 48 per cent saying they continue to find it difficult to put money aside in the current economic environment.
The number of people who say they can afford to save continues to fall and now stands at 33 per cent, down 3 per cent from September.
The survey found that increases in energy and fuel costs have negatively affected the spending ability of 86 per cent while private health insurance is a “huge concern”.
All told, 9 per cent of those with health insurance said they would have to give it up this year because they can no longer afford it, while a further 31 per cent said they would be forced to give it up if there are any further price increases.
While utilities and health insurance are of most concern to most people, mortgages and rent continue to be the most expensive bills for 75 per cent of Irish adults.
There has been a slight shift in the second and third categories with groceries/shopping now the second most expensive bill at 62 per cent followed by utility bills at 59 per cent.
“In each of our trackers in 2011, we saw disposable income continue to shrink for the population and we will be looking to see if this trend continues throughout 2012,” said ILCU chief executive Kieron Brennan.
“As we look to the year ahead, we once again encourage those who find themselves in a difficult financial situation to know that they are not alone.
“Remember that if you are in financial difficulty to contact your bank or credit union at the earliest possible opportunity to discuss your situation,” Mr Bannon said.
While the survey will make for depressing reading for most people at least there is some good news for Tesco.
The survey found that it has the lion’s share of the bulk grocery shopping market with 38 per cent of people saying they did their big shop in the British retailing giant.
Dunnes Stores is in second place, a long way behind at 20 per cent, while Aldi is in third on 11 per cent.
Lidl is next on 10 per cent, just two points ahead of SuperValu, while Superquinn is in last place on 6 per cent.