EMERGENCY DEBT management legislation must be enacted as soon as possible, the Debt Management Association of Ireland said yesterday.
Eugene McDarby, chairman of the umbrella body for debt management companies, said legislation to ensure the automatic freezing of interest and penalties on all kinds of debts should be introduced for borrowers as soon as they engage with debt management processes.
Irish people are the most indebted in Europe, owing €180 billion in personal debt, Mr McDarby said.
He said other European countries had non-judicial debt settlement structures for dealing with personal debt, but the Irish system was draconian and expensive.
“Irish people find it impossible to seek protection from their creditors as would be their natural right in any other jurisdiction,” he said.
He called for emergency legislation to be introduced as soon as possible to help people cope with their mounting debts.
Mr McDarby also highlighted a survey carried out by his debt management company, Moneyvillage.ie, which found of the 200 people surveyed, 80 per cent said they or a member of their household had suffered loss of employment or reduction in income.
Loss of employment was listed as the top reason for indebtedness, with reduction in income second, and living beyond means third.
Those surveyed also reported their main fears associated with indebtedness as being having to deal with frustration and an inability to handle uncertainty.
Mr McDarby said fear and feelings of humiliation and loss of control can lead to ill-informed decisions. He said many people do not prioritise their debts properly.
