The number of people seeking legal advice over debt burdens soared by more than a third in the run-up to Christmas, it has been revealed.
New Beginning, a group of lawyers and businessmen formed to defend people at risk of losing their homes, said it was getting around 75 phone calls a day - a 35 per cent hike from July.
David Hall, one of the founding members, revealed the spike was down to people worrying they could not pay their debts and provide for Christmas.
“People were extremely anxious before Christmas and wondering if action would be taken against them if they were unable to make some of their payments,” said Mr Hall. “They were asking what should they do. Santa Claus has to come, that’s very clear. And Santa should come for youngsters.”
Mr Hall said New Beginning, which has given legal representation to around 400 people since it was established a year ago, advised people that their debt would still be there in the New Year.
“In order for people to enjoy Christmas, we encouraged them to do so, but not in an extravagant way,” Mr Hall said. “The children should not have to suffer, therefore we believe the creditors should have to hang fire.”
He said the non-profit organisation noticed a spike in the number of people coming forward from July this year. “They were looking for assurances, but what do you say to people who have children and a mountain of debt? The debt will still be there in January.”
Mr Hall said the sharp rise in people seeking help from New Beginning may have also been down to the fact it has become more acceptable for a person to admit when they are in debt. “Irish people are very proud. We want to pay our debts,” he said.
New Beginning is now hoping to establish an independent debt resolution agency. In the event of a homeowner being unable to come up with their debt repayments and unable to reach a suitable arrangement with their lender, the matter would be referred to the agency which would have wide-ranging powers, including the ability to suggest changes to contracts.
Mr Hall said New Beginning had also organised a number of public meetings with small and medium sized businesses for the New Year in the hope of getting them on board.
“We view SMEs as the companies that are going to assist and help with the recovery of the country,” said Mr Hall.
According to the Central Bank of Ireland’s latest quarterly mortgage arrears data released in November, a total 1,048 properties had been repossessed since 2008.
PA