With the turkey leftovers still in the fridge, Limerick people have been advised to start budgeting for next Christmas within the next few weeks, if they want to avoid getting into financial difficulty. A spokesperson from the Limerick Money Advice and Budgeting Service (MABS) says that prevention and planning is key for people who may have found their finances stretched this Christmas. “We would like people to start thinking about Christmas in January or February. People preparing for something like a communion or confirmation coming up, or back to school costs in September, should also think about budgeting for these quite early.”
“Certainly with the likes of Christmas, if people haven’t started to budget for it by the end of the summer they are going to find themselves in difficulty unless they have a substantial disposable income. It’s all about preparing for it and to try not to get into difficulty. “
According to the spokesperson, Christmas-related debts can arise “when the need to spend money for Christmas takes priority and people fall behind on other things”.
The number of people in Limerick seeking advice on managing debt reached a peak between 2009 and 2010 and has not risen dramatically since.
The spokesperson explained: “There is a steady flow of people coming to access our services every month for budgeting and debt issues but there are many people out there who are dealing with their debt without using MABS services.”
“The general theme is that people have reached a point where they cannot make repayments. Mortgages and rent would be a big area of concern for people but it’s not possible to say what would be the main area of debt. There isn’t one main cause, it depends on what people borrowed for. Every case is different and they can have a mix of debts.”
MABS is advising anyone experiencing financial pressure to contact the organisation sooner rather than later.
“If people are having trouble with those kind of debts, we would advise them to come and have a budget appointment with MABS. The money advisor can show people how to budget; people normally look at their finances in broad figures but we go through the real nitty gritty which can be very helpful.”
“A burden shared is a burden smaller, people don’t have to be in deep trouble to come to us, it’s a good idea to come here before they get into real difficulty”, the spokesperson concluded.
