This article is from page 4 of the 2013-08-06 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 4 JPG
MORE than 11 per cent of mortgage holders in Clare have defaulted on their payments and many of these cash strapped home owners now face unpaid property tax been taken from their wages or social welfare payments in the coming weeks. Paul Woulfe Development Manager, Citizen Information Clare and MABS has attributed the struggle to stay up with household payments to increasing taxes and bills at a time when working hours are being cut. He told The Clare People that the majority of the people failing to pay their mortgages are not necessarily out of work, but people who have had their working hours or wages cut. “We are seeing this especially in the retail sector which has been badly hit. “People are having their hours and working days cut, with some being made redundant,” he said. “They are going into arrears because of changes in their circumstances. “Then there are extra charges such as the property tax,” he added. The citizen information expert said that at this time of year people are under particular pressure as they face the back to school bills. He was also critical of costs, bills and expenses that target the less well off such as the National Car Test and car tax. The NCT must be carried out in cars over four years old every sec ond year and every year on cars over ten years old. Car tax is also higher on older cars. “People have multiple debts, but we always encourage them to speak to their banks,” he said adding that there is some helpful information on the citizen information and MABS websites. The Ennis based official said there has been a marked improvement in the number of people contacting the office about mortgage payments problems since the introduction of the Central Banks Code of Conduct for banks, but people are still struggling. “There is a way of dealing with banks and the in formations is available on keepingyourhome.ie, citizen information or MABS,” said Mr Woulfe. Meanwhile Insurance company Caledonian Life has warned that the increase in arrears and mortgage restructure arrangements is leading to potential underinsurance issues for Irish households. Tadgh Malone Caledonian Life representative in Clare said; “According to a Moodys report from less than a year ago 11.3 per cent of people in Clare have defaulted on their mortgage and unfortunately it is unlikely that this per centage has decreased with the latest Central Bank figures revealing that arrears are on the up and so too are restructure arrangements for homeloans, with nearly 80,000 mortgage accounts classified as restructured.”