Despite the low unemployment and inflation rates in Ireland, the daily financial needs of Irish citizens do not seem to be met. According to multiple surveys conducted in groups of thousand people, the borrowing trends in Ireland display surprising statistics.
If the mathematics of The Journal were to be believed, around 64% of the Irish population earns less than the average salary in Ireland. A vast majority of Irish workers earn up to £33,181 every year. Dividing this number by 52, you get £638 per week, and by 12, you get £2,765 per month as income.
The inflation rates in Ireland were just revised in March 2019. They rose from 0.6 percent to 1.1 percent, reaching the highest number since 2013. What do people engage in when the cost of living increases but salaries remain almost constant?
From banks, friends, family, quick loans from direct lenders or by mortgaging their assets. Even for basic survival needs like housing and credit card bills, citizens have been complaining about facing a shortage of funds.
1- 60% Rental Share
How would you feel when you realize that the average rent of a Dublin apartment is £1,620 per month?! This is a transparent situation of how big a share of monthly income an Irish tenant spends on just rental expenses.
That amount is approximately 60 percent of the average monthly income in Ireland. And 1 out of every 10 people spends that amount just into paying rent for their housing needs. If that did not come as a surprise to you, imagine one out of every five citizens using 40% of their income as rental expenses.
A person spending such a huge part of monthly income into rent is left with a very small budget to fit other expenses into. Utility and grocery bills, including any debt installments; everything has to be fitted inside one salary.
With the surge in the rental income, the renting industry has also witnessed remarkable expansion. More people are now investing in buy to let properties to earn income through rent. Private renting has now become a phenomenon in Ireland.
2- 60% Utility Share
Since some time now, Irish citizens have been feeling the financial pressure mounting up. Affordability has decreased considerably and it has become essential to plan carefully before spending every penny.
According to The Journal, research was conducted to realize how the Irish population manages to pay off their monthly bills. Again, 60 percent of the participants revealed that they usually have to borrow from an outside source, as it gets very difficult to accommodate every expense in the monthly salary.
As per the results, 35 percent of them used their credit cards, 17 percent used the overdraft facility provided by their banks, 12 percent took a loan from banks, 20 percent borrowed money from friends and family, and the rest 13% simply took money as a gift from their loved ones.
To add to the financial burden, the electricity costs in Ireland are the sixth highest in the EU. Not just that, internet costs stay among the highest across the EU. How can a person really manage within the salary when even the basic survival needs are this expensive?
3- 60% Borrowing Share
When people search outside for borrowing sources, they find plenty of options available for them. Quick loans in Ireland, especially Dublin is one of the big reliefs that citizens enjoy during their financial hardships.
These unsecured loans are designed for a short-term and are very conveniently available. Applying for them is as easy as swiping a credit card. You use the money, and pay it back over the next few weeks or months when you have money. Even better, you do not have to involve yourself in tedious and lengthy documentation procedures.
The minute you submit your application form online, your application is processed and you get the money in a few hours. Most Irish citizens know about this comfortable facility available to them. Unsecured lending has been increasing in Ireland for many years now.
With the high living costs and difficulty to manage expenses within the income, this quick option comes really handy for the bill paying citizens.
If healthcare and insurance are also included, the outflow of money reaches even higher numbers. About 40 percent of Irish citizens have reported facing financial burden while paying for medical care and various insurances like life, health, and car.
Every country has its own economy and living costs. It finally falls into the lap of middle-income groups to handle the highs and lows of inflation and added costs. When it really becomes unmanageable to stay within the budget, quick unsecured loans really come as helping hands in handling finances.