Shoppers were today warned to avoid falling into debt by overspending at Christmas.
The Irish League of Credit Unions (ILCU) has highlighted the dangers of falling into debt and relying on high-interest moneylenders during the festive season.
ILCU Liam O'Dwyer
"Spending more than you can realistically afford will cause real difficulties both financially and emotionally after the glow of Christmas has faded," ILCU chief executive Liam O'Dwyer said.
"Personal borrowing in Ireland is at record levels, and given the present financial and economic uncertainties, it's vital for people to manage their pre-Christmas buying carefully."
Christmas spending among shoppers is expected to top on average €1,431, up 7 per cent on last year, placing the country at the head of Europe's spending league.
Research done by University College Cork revealed 39 per cent of people at post offices on welfare-payment days owed money to moneylenders.
Another 40 per cent have had to use moneylenders in the past. APR rates can be as high as 188.5 per cent, with average rates of 40-50 per cent, the research highlighted.
The Combat Poverty Agency estimates that 150,000 people are using moneylenders.
PA
