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Press Releases 2008

New Programme Encourages Students to Get Smart with their Money (25 Sept. 2008)

The Minister for Social and Family Affairs, Mary Hanafin, TD, today launched ‘Get smart with your money', a free, class-based personal development programme aimed at Transition Year students. The programme is a joint initiative between the Money Advice and Budgeting Service (MABS) and the Financial Regulator and is available to schools throughout Ireland from September 2008. ‘Get smart with your money' encourages students to explore their attitudes to money and focuses on budgeting, planning ahead, shopping around and saving. Launching ‘Get smart with your money', Social and Family Affairs Minister Mary Hanafin said “having a dedicated module on finance, which helps young people understand budgeting, planning, shopping around and how to manage their resources in order to make the most of their money is very welcome. Students will be able to build on their knowledge from the other financial areas of the curriculum, such as Mathematics, and Business Studies. MABS has a strong record in helping people who are experiencing debt situations and has worked very closely with the Financial Regulator to deliver this programme. ”

The ‘Get smart with our money' pack contains a teacher's manual, which guides the teacher through the programme using activities, tips, case studies and a glossary. The pack also contains a learner journal for students. This journal is a private and personal resource, designed to allow each learner to record their thoughts on the activities they complete. It contains a range of ‘tools' such as a weeklong spending diary, a budget planner and a shopping around table to help teach students the skills they will need to be ‘smart' with their money. Speaking at the launch of the programme, the Consumer Director of the Financial Regulator, Mary O'Dea said: “‘Get smart with your money” is an important resource for schools as it encourages students to think about where their money comes from, what they spend it on and what role money plays in their lives. It offers a great opportunity for students to get to grips with these issues at an early age, helping them to develop good money management habits. The Financial Regulator and MABS have been offering in-service training nationwide since the start of September and further dates are available in October, to give teachers additional support on the new programme. To book a space at this in-service training, or for more information on the pack, contact education@financialregulator.ie or phone (01) 410 4816.

Mortgage Arrears Advice (11th August 2008)

There has been a significant increase in clients with mortgages, who are experiencing financial difficulties, approaching the Money Advice and Budgeting Service (MABS) in the first half of 2008 compared with the first half of 2007. Some of those in difficulty are with Sub-Prime lenders and are in danger of loosing their homes.

“Contacting your lender as early as possible when in difficulty will save you considerable anxiety” said a MABS spokesperson.

To consumers who are already in difficulty with their mortgage repayments or anticipate, because of a fall in income, that they will be in difficulty MABS gives the following advice:

1. Contact your mortgage lender as soon as possible by letter, email, fax or face to face rather than by phone
2. Don't ignore communications from your mortgage lender or their legal representative
3. Be prepared - have your facts and figures at hand when making contact. The first step is to make out your household budget detailing your income and outgoings. From this you will be able to see what you can afford to pay. A sample budget sheet is available on the MABS website at http://www.mabs.ie/process/step2.html If you need help call the MABS helpline 1890 283 438 for advice or for a self-help pack.
4. Know your bottom line. Know what you can afford to pay to clear arrears on top of your mortgage payment. Be very realistic, taking into account the overall cost of running your household. Make a reasonable offer and don't agree to try to pay more.
5. Don't adjust offers in line with creditor demands. Restate that your offer is based on ability to pay.
6. If you cannot afford to pay anything off arrears ask for your arrears to be capitalised i.e. become part of the money borrowed.
7. If because of your circumstances you cannot afford to pay the full mortgage repayment ask to be allowed to pay interest only for a period or request that the length of your mortgage be extended to reduce monthly payments
8. Get everything you have agreed upon in writing
9. Emphasise the mutual benefits of affordable and sustainable agreements.
10. Assure your mortgage supplier that should your circumstances change you will revise your situation with them immediately
11. If your negotiation is not proving successful ask if you could contact someone senior
12. Look, if necessary, for short term acceptance of your proposal (e.g. 3 – 6 months)
13. Don't be afraid of court action. However, you need to realise that if your case does go to court more than likely you will be liable for the court costs. It will help your case if you can show that you are making a genuine effort. You should seek independent legal advice in such cases.
14. It must be acknowledged that there are some situations where people are and will in the foreseeable future, be unable to sustain their mortgage payments. If this applies to you, you must seriously consider your options. Independent legal advice from your solicitor and free, confidential and independent advice from a MABS adviser is recommended in such cases.
15. The advice from MABS is that if you are experiencing difficulties with your mortgage you should not panic. There are many things which you can do for yourself like drawing up a budget, negotiating with your mortgage lender and looking at all your options. You might need specialist help with some of this but remember that such help is also at hand.

The Money Advice and Budgeting Service has helpful information, budget sheets and sample letters available on their website www.mabs.ie . Advice and information is also available by calling the MABS helpline 1890 283438 (Monday – Friday 9am to 8pm.) and from over 60 offices nationwide.

END For Immediate Release

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