Since its inception in 2011, the Irish League of Credit Unions (ILCU) tracker has followed how ordinary people around the country have been impacted by austerity and recession and through the research, have seen the huge impact the shift in the economy has had on family finances, resulting for some, in a day to day struggle to make ends meet.

Over the past six months the tracker research has revealed more positivity among the population and in terms of personal finances, we are perhaps seeing the beginning of recovery or maybe simply that people, having adapted to the prevailing economic conditions, are more able to manage their money and pay their bills. We hope that 2014 continues to show this positivity.

Disposable Income

The research results for the last quarter of 2013 continue to show signs of stabilisation. This improving trend is most evident amongst those currently in employment where there has been the strongest growth in increased disposable income.

1.664 million people have €100 or less left at the end of the month once all the bills are paid (a decrease of 131,000 on the September 2013 figure); 1.098 million people have €50 or less left (a decrease of 1.208 million, while 480,000 have nothing left at the end of the month (a drop of 38,000 since September 2013).

These figures would indicate that more people are moving out of the lower disposable income categories and into the higher categories, indicating a gradual recovery in family finances.

Disposable Income – All Adults

Disposable income across the population has increased from €172 to €182 since September 2013 (an increase of €49 from December 2012). ‘Working adults’ have seen an increase of €12 since September 2013 and by €56 from December 2012.

There has been an increase in those who are able to save every month (44% in December 2013 (31% in Dec ’12) while 32% have put off paying their essential bills on time, a drop from 38% in September 2013.

Credit Card Debt

70% (or 1.8 million people) currently owe money on their credit card, 31% depend on their credit card to make ends meet each month while 30% credit card owners are falling behind on their credit card bills (a decrease from 39% in December 2012).

The average amount owed on a credit card is €2,480, an increase from €2,400 in December 2012 and only 45% of credit card holders know what interest rate they are paying with 4% having had a credit card revoked in 2013.

Property Tax:

4 in 10 homeowners will have to forego spending in other areas like clothing and footwear and groceries to pay the 2014 property tax.