Rise in people seeking financial advice

The number of people seeking advice on their personal finances soared last year, according to new figures released today.

The Money Advice and Budget Service (Mabs), which is a free independent service for people experiencing financial difficulties, said that it saw 16,000 new clients in 2008.

An additional 2,400 sought information about budgeting and money management from the organisation's local services and the Mabs National Helpline received almost 11,000 calls.

The latest figures show that the total amount owed by new clients to creditors last year, based on the debt they had when first contacting Mabs, amounted to €205 million. Over64 per cent of this sum was owed to financial institutions while 16per cent was owed to credit unions.

The average debt owed, by new clients when they first came to Mabs, was in the region of €12,400.

According to the data, 53 per cent of new clients were in the 26-40 age group with a further third aged between 41-65. Almost two-thirds of new clients were female.

Almost a quarter of new clients were single and 21 per cent were single with children. A further 19 per cent of clients were married with children while 20 per cent were either separated, divorced or widowed.

Mabs said that it expects 2009 to be as busy as last year as the recession continues. It is taking on additional staff at six offices around the country to help clients get to grips with their personal finances.

The Department of Social and Family Affairs is providing almost €18 million to fund Mabs in 65 locations throughout the country.

Speaking this morning, the Minister for Social and Family Affairs Mary Hanafin urged people not to to put off dealing with debt.

"By going to the Money Advice and Budgeting Service, people in debt are taking a positive step. The worst thing that someone can do is to ignore mounting bills. At Mabs, they will get non-judgemental, confidential and independent advice. Mabs money advisers will help clients to assess their financial situation, make a budget plan for the future and deal with creditors.”

The Mabs national Helpline is at 1890 283438