LET SANTA BE THE ONLY ONE IN THE RED THIS CHRISTMAS!

SURVEY FINDS THAT CHRISTMAS 2011 WILL PUSH 38% OF PEOPLE INTO DEBT

 

IRISH ADULTS TO SPEND ON AVERAGE €562 EACH FOR CHRISTMAS 2011 BUT 70% BELIEVE IRISH PEOPLE SPEND TOO MUCH

 

IT CAN TAKE SOME IRISH PEOPLE OVER SEVEN MONTHS TO RECOVER FROM OVERSPENDING AT CHRISTMAS

 

WOMEN WORRY MORE AND TAKE LONGER TO RECOVER FROM CHRISTMAS OVERSPENDING THAN MEN

 62% SAY THE COST OF GOODS ON THE HIGHSTREET IS STILL TOO HIGH

 FAVOURITE ASPECT OF CHRISTMAS IS SPENDING TIME WITH FAMILY

 (21st November) Though Christmas is a time of joy, it puts a lot of pressure on hard pressed parents trying to give their families a holiday to remember according to the Irish League of Credit Unions, who today have launched their annual Christmas campaign – “Let Santa be the only one in the red this Christmas”. The campaign urges the public to avoid borrowing beyond their means to avoid a sack full of debt in the New Year.

 2011 has been incredibly tough for the Irish public. **Disposable income has been shrinking and there has been an increase in the number of people making do with just €70 per month once essential items such as mortgage, rent, groceries and utility bills are paid. Many of Ireland’s energy suppliers will also pass on increased energy costs to the public this winter and eight in ten Irish people are very worried about the impact these costs will have on their already stretched incomes.

 In addition, nine in ten Irish adults worried about the outcome of the upcoming budget.** All in all a large percentage of the population will be very worried about how or if they and their families will enjoy the Christmas season this year. ** ILCU 3rd Round Disposable Income Tracker October 2011

 The ILCU Christmas spending survey shows that in 2011 approximately 38% will get into debt this Christmas. 41% of females compared to 34% of males are worried about over spending at Christmas. 77% do not feel any better about their financial situation than they did last Christmas.

 55% of respondents say they will use general savings or cash to pay for Christmas, with 28% using Christmas specific savings. 9% will use their credit card with smaller numbers availing of credit union loans and money lenders. Credit union members are more likely to use Christmas specific savings than non members (32% versus 21%)

 In terms of recovering from over spending at Christmas, 34% stated that it will take 2-3 months to recover. 12% are taking 4 months or more and a small proportion of respondents say it will take over 7 months to recover financially from Christmas 2011. The survey shows that women are taking longer than men to recover from Christmas debt.

 62% of respondents feel that there is not good value on the high-street - this varies by region, with 39% in Dublin, 55% in Leinster (outside Dublin), 67% in Munster and 67% in Ulster / Connacht. Overall 70% believe that Irish people spend too much on Christmas.

 Irish League of Credit Unions CEO, Kieron Brennan said: “We have seen the impact of some of the toughest financial challenges play out in 2011. Worries over how to finance Christmas is not far from people’s minds. The survey shows that 38% of people will get themselves into debt this Christmas with some Irish people taking up to 7 months or more to recover financially! It also seems that more women than men are worried about overspending at this time of year.

 He added: We are warning people not to be tempted into using moneylenders, due to the extremely high rate of interest charged and also to watch out for credit card debt, as a high rate of interest will be charged to balances that are not cleared on time every month. In addition, we want to encourage people to plan ahead and avoid this situation in the future and go to their credit union and start a Christmas savings account for next year. This way you can put a little bit away every month and not have to worry about sourcing additional money at Christmas 2012.”

 He finished by saying: As we approach Christmas, our survey shows that the greatest enjoyment for Irish people is spending time with family at Christmas. We want people to enjoy Christmas this year and keep in mind what really matters and that is family and friends and not causing yourself unnecessary stress by getting into financial difficulty.

 

Frank Conway, Managing Director of MoneyCoach.ie said: “Families can be savvy when it comes to shopping for Christmas. For example, starting early and the avoidance of 'panic buying' can really help keep costs low and provide the family member sufficient time to search for the best deal. Online can be great for locating some great value but remember to avoid expensive, last-minute courier costs which can drive prices up.

 Setting a Christmas spending budget is more important than ever as is writing a list (and checking it twice). With a good list and a practical budget on hand...and making sure one sticks to them, families should be in a better position to keep a tight reins on the Christmas shopping costs.

 If buying for other family members, consider a 'family gift' instead of buying for individual family members. There are lots of fantastic food producers in Ireland and a little expensive wrapping can really add a lot of value to a treat the whole family can enjoy.

 Christmas really is about giving...not robbing the family finances. Most people will appreciate and remember a gesture of giving at this special time.”

 About the Irish League of Credit Unions

The Irish League of Credit Unions is the representative body for 495 credit unions on the island of Ireland. It is Ireland’s successful, not-for-profit, financial co-operative run by – and for – its 3.05 million members.

THE SURVEY

The survey was conducted by Market Research Company iReach during October 2011 using the iReach Consumer Decisions Research Panel which delivered 1,000 responses from adults in Ireland aged 18+ to 65+ and is nationally representative by Age, Region, Gender and Social Class.

 It found that:

 Respondents (individually) will spend on average €562 on Christmas this year, with 26% spending less than €300, 27% between €300 and €500, 18% between €500 and €700 and 18% between €700 and €1,000.
 

65% of respondents spend the most money on toys and presents, 22% on food and 9% on socialising. Females (68%) spend marginally more on toys and presents than males (61%). Males (24%) spend money on food and 10% on socializing compared to females (20%) on food and 8% on socializing.
 

55% of respondents use general savings or cash to pay for Christmas, with 28% using specific savings for Christmas, 9% will use credit cards, 3% credit union loans, 3% Christmas bonuses and 1% moneylenders. Credit union members are more likely to have Christmas specific savings (32% versus 21%) and are less likely to use credit cards than non members (8% versus 12%)
 

38% of respondents will find themselves in debt this Christmas as a result of overspending. Females seem to be more worried about Christmas debt compared to males.
 

It will take 2 – 3 months for 26% of respondents to recover financially from Christmas, a further 26% say it will take no time at all. 37% of females take 2-3 months to recover from the costs of Christmas compared to 30% of males.
 

How long will it take you to financially recover from Christmas?

Males

Females

Total

No time
30%
No time
22%
26%

1 month
31%
1 month
27%
28%

2-3 months
30%
2-3months
37%
26%

4-6months
6%
4-6months
8%
8%

7+ months
3%
7+ months
6%
4%
 

 20% of respondents would consider a credit union loan to pay for Christmas.
 

77% of respondents do not feel any better about their financial situation than they did last year. This varies by age group - 69% of 18-34 year olds don’t feel better about their financial situations compared to 79% of 35 - 49 year olds and 85% of 50+ year olds.
 

62% of respondents feel that there is not good value on the high street. This varies by region - 61% in Dublin, 55% in the rest of Leinster, 67% in Munster and 67% in Ulster / Connacht.
 

68% of respondents state that their favourite aspect of Christmas is spending time with family with 12% saying giving & receiving presents and 11% eating Christmas dinner. 15% of females indicate gift giving / receiving presents as most popular compared to 7% of males.
 

Average spend on ‘Santa’ presents is €164 per child
 

70% of people plan to shop online this Christmas, 47% of those that do, do so because there is better value online with 29% stating that it is more convenient.
 

70% believe Irish people spend too much on Christmas with 43% stating that they find Christmas a stressful time of year.
 

50% of male respondents start shopping in December compared to 26% of females with 24% of males compared to 16% of females finishing on Christmas Eve.
 

 

IRISH LEAGUE OF CREDIT UNIONS ANNOUNCE RESULTS OF THIRD ‘WHATS LEFT’ DISPOSABLE INCOME TRACKER INDEX - October 2011

Irish Disposable Income Continues to Shrink

2% increase in the number of Irish adults who have approximately €70 per month left after essential bills are paid

Eight in ten Irish adults are worried about energy cost increases this winter, with 25% saying they will not be able to cope with the increases

15% of adults will have to dip into their savings to cover increases in energy bills.

Nine in ten adults are concerned about the upcoming budget and the effect it will have on their income. 61% are most concerned about increases in income tax

(17th October 2011) The Irish League of Credit Unions has today announced the results of the third 2011 ‘What’s Left’ disposable income tracker index. The tracker index records how much disposable income Irish people have this year, where they are spending their money and the financial hardships they are facing.

*** Note: While there have been percentage increases and decreases in some of the figures in the September tracker, some of these percentages fall into the margin of error associated with this kind of tracker research. A clearer picture of the actual increases or decreases will not be clearly defined until all of the 2011 trackers have been recorded.

Disposable Income
The study shows that overall 63% of all respondents felt that their disposable income has reduced since this time last year (2010). Irish individuals and families are still struggling as Irish disposable income continues to shrink. The findings show that in September, 8% were not able to cover their essential bills. There has also been a jump in those with nothing left after they pay their essential bills (up from 7% in June to 12% in September). In addition the survey found that there has been an increase (to 25%) in those making do with only €70 per month after essential bills like mortgage and rent are paid.

Concern over Increasing Energy Costs….
Of most concern to people surveyed are the impending increases in the cost of energy, as the country prepares for winter. Eight in ten Irish adults are worried about the increased energy costs they are set to face. Only one third of Irish adults have taken steps to plan for the increased costs – for example possibly switching suppliers, putting additional money aside or planning ways to reduce energy usage.

25% stated that no matter how much they plan, they will not be able to deal with any increases to their energy bills. Almost 15% will have to dip into their savings to fund increases with a further 7% relying on social welfare benefits and 5% on credit cards and 2% turning to moneylenders.

Budget 2012
The upcoming 2012 budget is also causing a great deal of concern to many Irish adults, with nine out of 10 worried about the outcome. The majority of those surveyed – (61%) are most concerned about increases to income tax, followed by changes to social welfare (19%) and fuel increases (12%)

Saving
48% of Irish adults continue to find it difficult to save money in the current environment. There has been a slight increase in those that are likely to save (36%) and an increase in the amount saved (increase from €195 in the June findings to €210 in the September findings).

Positivity
On a slightly more positive note, the survey indicates the possible beginning of an improvement in public outlook, with more people, while still finding the current environment challenging, are better able to deal with their finances than earlier in 2011. There has been a slight drop (83% in September down from 85% in June) in the number of respondents, with little or no income (1-5%) left after paying for essentials, who worry about how they will cope if any unforeseen expenses occur. 71% of those with little or no income left after essentials said they could not cope with any changes to welfare and income tax, down from 82% in June. The survey also found that more people are managing to pay their bills on time than 3 months ago (up from 53% in June to 58% in September).

Commenting on the third ‘What’s Left’ Disposable Income Tracker ILCU CEO Kieron Brennan said: “The September ‘What’s Left’ tracker shows us that disposable income continues to shrink for the Irish public. Like our tracker in June, this third round is a further indication of just how hard the ordinary people of Ireland are being hit by increasing household expenses.

Of greatest concern is the impending increases to energy bills which will hit families hard in the coming months and there is a worry that many will not be adequately able to heat their homes this winter as a result. We are urging people to stay on top of this, look across the range of suppliers and find an option that best suits them and also look at ways in which you can reduce your energy usage over the coming months. This year’s Budget is also causing much anxiety among Irish adults with many very worried about how any increases in income tax will affect their already stretched incomes.”

He added: “As we move into the winter and Christmas season, we are advising people to take a moment, sit down and look at what their expenses are likely to be over the coming three months - where are the areas that you will need to concentrate on and where can you reduce spend. As always the credit union is happy to help and advise you on putting together a budget / financial plan.”

-Ends-
HIGHLIGHTS BELOW

Notes to Editor
About the Tracker Survey
The survey was conducted by Market Research Company iReach during the period of September 2011 using the iReach Consumer Decisions Research Panel which delivered 1,000 responses from adults in Ireland aged 18+ to 65+ and is nationally representative by Age, Region, Gender and Social Class. This research has a confidence level of 95% and confidence interval of 4%.

For the Earnings and Labour Cost the CSO Q2 2011 figures show €687.24 average weekly earnings.

About the Irish League of Credit Unions
The Irish League of Credit Unions is the representative body for over 496 Credit Unions on the island of Ireland. It is Ireland’s successful, not-for-profit, financial co-operative run by – and for – it’s 3 million members.

For further information, please contact Emma Casey, ILCU Communications Department 01 614 6781

Highlights from the 3rd ‘What’s Left’ tracker undertaken by iREACH Market Research on behalf of the Irish League of Credit Unions. Statistics are given with population equivalents where possible.

Essential Bills
The highlights from the ILCU ‘What’s Left’ tracker found again that as expected respondents stated that mortgage and rent were the largest / most important bills for respondents (75%). This is followed by utilities (56%) and groceries (55%). Transport / car (26%), loan repayments (28%), credit cards (24%) followed by health insurance (18%) and education fees (11%).

Of all respondents:
8% or 280,000 believe that their disposable income does not even cover their essentials.
12% or 420,000 have nothing left after paying their essential bills.
25% or 875,000 now have approximately €70 left each month after essential bills are paid.

18% or 630,000 have 6-10% of their income left after paying for essentials.
20% or 700,000 have 11-20% of their income left after paying for essentials.
Those who have enough to enjoy themselves (20% of their income left) has reduced to 17% or 595,000

Of those that work
6% or108,000 workers find their disposable income does not even cover essential bills while a further 12% or 216,000 have nothing left after they have paid their essential bills

25% or 450,000 have1-5% of their disposable income left after paying their bills.
18% or 324,000 have 6 -10% of their disposable income left after paying their bills.
20% or 360,000 have 11-20% of their disposable income left after paying essential bills.
19% or 342,000 have 20+% of their disposable income left after paying essential bills.

Of those that have 5% or less of disposable income left each month:
83% of those that have less than 5% left worry about how they will cope if unforeseen expenses arise
57% of those that have less than 5% left agreed that they are living to work as opposed to working to live
71% of those that have less than 5% left fear that they will not be able to cope if there are any further changes to social welfare / income
38% of those that have less than 5% left do not see a future for themselves or their family in this country
41% of those that have less than 5% left believe that with changes to the minimum wage they would be better off not working.

ECB Rate Increase (July) / Further Rate Increases
47% have been significantly affected by the July ECB rate increase.

Saving: 48% are unlikely to have money to save in the current economic climate, this is on par with the June findings

36% are able to save in the current environment, a marginal decrease on the June figures.

The average person able to save money can now save €210 each month, this is up on €195 from June.

Changes from this time last year
63% now believe that their disposable income has decreased from this time last year