MORE THAN one in three people have some degree of difficulty keeping up with their bills and debts, according to preliminary findings of the largest-ever research project undertaken by the Financial Regulator.
The regulator found in a survey of how people manage their money that 37 per cent find it a struggle, at least some of the time, keeping up with bills and debts.
This rose to 60 per cent and 66.2 per cent for divorced and separated people respectively.
Half of all those surveyed said they would be in financial difficulty after six months if their household income dropped by a quarter for three months or more.
Some 13 per cent have found themselves in financial difficulties within the past five years, where they were three months or more behind on their regular commitments.
This rose to 20 per cent for people aged between 21 and 35, and to 36 per cent for divorced people and 26 per cent for separated people.
One in four had experienced a large, unexpected drop in income over the past three years, while 16 per cent have had a major unexpected expense, equal to a month's income, over the same period.
Mary O'Dea, consumer director at the regulator, said: "Given the current market conditions and the rising cost of living, Irish consumers need to be conscious of their personal finances and to think more about planning. You need to develop a practical budget that suits your needs and allows you to prepare yourself for the unexpected."
Some 44 per cent said they were not prepared to take any risks with savings and investments, while 61 per cent didn't have a credit card and 17 per cent didn't have a current bank account. Ms O'Dea said banks and building societies should make their products more suitable to low income earners, such as providing "low-cost, no-frills" banks accounts.
The survey involved interviews with just over 1,500 people across the State between November 2007 and February 2008.
The aim of the survey was to gain a better understanding of how people manage their money and plan ahead, as well as assessing how they make choices between financial products.
Some 27 per cent said they didn't know how to make a complaint against a financial services firm.
The survey found that consumers were more likely to shop around for mortgages, insurance and investments, and less likely to seek better deals on savings accounts, loans and current accounts.
The regulator is due to publish the full report at the end of this year.
