All New ILCU'S 2012 ‘What's Left’ Tracker / Fix Your Finances Project
Media Release: 16 April 2012
The Irish League of Credit Unions has today announced the launch of the all new 2012 ‘What’s Left’ tracker index. Carrying on from 2011, the tracker will record household expenditure, how much disposable income Irish people have this year, where they are spending their money and the financial hardships they are facing.
This year, however, we have added something extra…….. The 2012 ‘What’s Left’ tracker will be brought to life by way of 4 independent, real life case studies as part of the Fix your Finances Project. Meet 19 year old Darragh Mullen a psychology student at NUI Maynooth; 72 year old Peter O’Brien from Tallaght; 42 year old Dara Mahon a professional female from Limerick and the Carroll family from Dublin, who will tell their financial stories to the nation with each round of tracker research.
Throughout 2012 we will follow each of the case studies through the website www.fixyourfinances.ie, track their disposable income, where they are feeling financial pressure and what their main financial concerns are each month and for the year ahead.
Midway through the process an independent financial advisor will be brought in to help each case study better manage their finances in the hope that by the end of 2012, each case study will have a better organised approach to money management. Information, photos and a video diary are available through the website. Jump to the attached document for more information.
First 2012 ‘What’s Left’ Tracker Findings
Disposable Income
Disposable income remains under pressure for the majority of Irish consumers. 63% feel that the amount that they have left over after paying essential bills has fallen during the past 12 months and half (51%) have experienced a fall in disposable income compared to 6 months ago.
|
Money Left at the End of the Month |
All Adults |
Population Equivalent |
Working Adults |
Population Equivalent |
|
None |
16% |
560,000 |
12% |
216,000 |
|
Less than €20 |
6% |
210,000 |
4% |
72,000 |
|
€21-€50 |
11% |
385,000 |
9% |
162,000 |
|
€51-€100 |
14% |
490,000 |
15% |
270,000 |
|
€101-€150 |
14% |
490,000 |
14% |
252,000 |
|
€151-€200 |
7% |
245,000 |
8% |
144,000 |
|
€201-€250 |
5% |
175,000 |
6% |
108,000 |
|
€251-€300 |
5% |
175,000 |
5% |
90,000 |
|
€301-€350 |
3% |
105,000 |
3% |
54,000 |
|
€351-€400 |
4% |
140,000 |
6% |
108,000 |
|
€401-€500 |
4% |
140,000 |
4% |
72,000 |
|
€500+ |
11% |
385,000 |
14% |
252,000 |
Sentiment
84% of those with less than 5% left after essential bills are paid, worry about how they will cope if unforeseen expenses arise - this shows an increase on the December figure of 82%. These vulnerable consumers show slightly greater concerns over their ability to continue coping financially if further changes are made to social welfare or income tax, showing a slight increase from December 2011. 57% agreed that they were living to work as opposed to working to live.
Motoring
Almost half (45%) of Irish motorists are really struggling with the increased cost of motoring. 7% of motorists are considering giving up or selling their cars as a result of increasing fuel prices and car tax. If petrol and diesel prices continue to increase, 32% stated that they will manage but household spending will suffer. 10% stated that they will not be able to afford to keep their car. 64% are open to using public transport however, half (47%) state that the public transport options where they live are poor.
40% of motorists have switched insurance company to cut down on motor related costs, 23% have switched to a cheaper garage for servicing and 13% have given up rescue cover to cut down on costs. One in five motorists has already changed their car for a smaller model, 26% intend to change their car to a smaller model to reduce their costs. Two thirds of motorists put off servicing their car because they cannot afford it. 1% are driving without insurance to reduce costs.
82% do not plan on buying a new car in the next 12 months - 41% cannot afford to do so, 15% view it as an unnecessary expenditure right now and 2% state that they will not be able to access finance to pay for it.
Essential Bills
Once again mortgage and rent are the most expensive bills for the majority of Irish adults (74%). Groceries remain the second most expensive bill (groceries moved ahead of utility bills in the ranking in December and have remained there). The improvement in the weather may be putting less pressure on heating etc and utility bills remain in third position. Noticeably transport and fuel costs have increased as a result of the increased motor tax fee and the continuous increase in fuel costs.
Delayed Bill Payments
47% of consumers struggle to pay all of their bills on time. This figure has dropped from the 55% recorded in the December 2011 tracker figures. TV license, bin charges and TV / telecoms remain the bills that are most likely to be put off by consumers. 69% are really worried about falling behind with their bill payments with 24% of that number find it very stressful indeed.
Household Charge
As of March 23rd 2012, 42% of households stated that they had no intention of paying the household charge. Almost 3 in 10 people (28%) of home owners won’t pay as they can’t afford it with 8% stating that the will wait until they are threatened with legal action to pay.
Saving
Almost half of consumers (46%) are unable to save money; this shows a slight improvement on the December figures (48%). Only one third are able to save in the current climate, the average person now saving €197 each month, a slight increase from December 2011 - €192.
Commenting on the new 2012 ‘What’s Left’ Disposable Income Tracker ILCU CEO Kieron Brennan said: “As we continue with our ‘What’s Left’ tracker into 2012, we are introducing 4 case studies who will bring a real life dimension to the research. The case studies reflect the national population and they have allowed us to track their household finances for the next 12 months. Every Irish person has been impacted in some way by the current financial crisis and we want to let people know that they are not alone in their struggles.
The aim of the ‘Fix your Finances’ Project is to show how different people are affected in different ways by things like increased motoring costs, the household charge, grocery prices, college / school costs, loan repayments including mortgage and rent, health insurance etc. With the help of an independent financial advisor we hope to show people how they can take control of how they manage their money.”