New poor at the coalface of deep debt and despair

Date Published: {J}

I truly believe we help save a life a day,” says Marie McLernon of the Money Advice and Budgeting Service (MABS). That might sound like an extraordinary claim, but given that the organisation in Galway City saw 12 people in just one day last week, some of them suffering from debt related depression, it’s not so strange.

“Sometimes people are so depressed that the first thing you’d ask them is if they are suicidal and if they are, you refer them to a doctor,” she says.

The community based organisation MABS was originally set up in 1992 to help people with social welfare payments who were having problems meeting debt. But, with the economic crash, that has changed totally.

The independent, confidential and free service in Galway now deals with people from all walks of life, as the county suffers job losses and massive wage reductions across the board.

“The goalposts have moved so far that the ball is now outside the goalposts,” says Marie who is Money Advice Co-ordinator of South Galway MABS, which has its headquarters in Quay Street.

Many people on low wages are now often worse off than people on social welfare, as social welfare recipients have supplementary incomes such as rent relief and fuel allowances.

In addition, more self employed people are seeking help as their businesses go under.

This is particularly true of sole traders, who may have to deal with anything between six to 20 creditors and who are personally responsible for their business debts.

The total amount owed to creditors in the South Galway area is €30 million, including outstanding mortgages, she says.

The term ‘South Galway area’ is a bit of a misnomer, as the city based office covers the east, south and west of the county, including the city, Connemara and the islands. North Galway is covered by an office based in Tuam.

The Quay St office employs three fulltime money advisers and an administrator.

The organisation has a sub-office in Loughrea and opened new premises in the town last year, moving to the more central area of Piggott Street. The Loughrea office runs an outreach service to Gort and Portumna.

For more, read this week’s Galway City Tribune.