MORE THAN half of Irish households have had financial difficulties and one in 10 believe they have borrowed more than they can afford, a new survey shows.
Just under a quarter of Irish households expect their financial situation to improve, according to the new index from insurer Genworth Financial, which measures financial vulnerability across 10 European countries.
Ireland ranks sixth for financial vulnerability but is in second place for those reporting difficulties when it comes to paying bills and finding it a constant struggle to keep up with financial commitments.
The index found that the number of earners in a household had the greatest effect on influencing financial vulnerability in Ireland, more so than any other socioeconomic factor.
Bob Brannock, president of Genworth in Europe, said: "The results show just how much pressure households are under to make ends meet. With the survey showing a high reliance on dual incomes in Ireland, households need to plan ahead to ensure financial security."
Redmond McDonnell, general manager of Genworth's payment protection insurance business in Ireland, said: "With the financial environment changing at such a rapid pace, this first reading of the index provides an important baseline from which to track any shift in consumer financial vulnerability or security." The second index is due in early autumn. Genworth sells payment protection and mortgage insurance.
A recent survey by the Irish Financial Services Regulatory Authority - carried out before the economic downturn - found 37 per cent of people had some de- gree of difficulty keeping up with bills and credit commitments.
