Money advice and budgeting service

Host Country : Ireland

Place and date : Cork , 18. - 19.11.2004

Peer countries : Denmark - Germany - Hungary - Luxembourg - Slovakia - Slovenia - The Netherlands - United Kingdom

The Money Advice and Budgeting Service (MABS) is a countrywide service funded by the Department of Social and Family Affairs. The service is managed by 52 locally based companies, with board members drawn from the statutory and voluntary sectors. The MABS provides an independent, free and confidential service primarily to low-income families who are in debt or at risk of getting into debt. It has an emphasis on practical, budget-based measures that will succeed in removing people permanently from dependence on moneylenders and open up alternative sources of low-cost credit through their local credit unions. Credit unions are member-owned and member-run financial co-operatives. Members of a credit union have a common bond generally based on where they live (community) or where they work (occupational). The MABS has a special relationship with the credit unions, which operate a 'special accounts' system to enable the MABS client to repay debts and save small amounts. A Loan Guarantee Fund also operates to provide 'crisis' loans as an alternative to the moneylender.

The aim of the service is to help people to regain control of their finances and to budget for the future. It helps them to prepare a budget plan and to contact their creditors with a view to rescheduling repayments. The Money Adviser also helps clients to maximise their income, prioritise their debts, and where necessary, contact and refer to other support agencies. The MABS frequently intervenes to prevent repossession of the family home and also to prevent disconnection of gas and electricity supply.

A Pilot Debt Settlement Programme was recently agreed by the MABS and the Irish Bankers' Federation and supported by the other main creditors. This pilot scheme provides a non-judicial alternative for resolving cases of multiple consumer debt that are likely to prove intractable and otherwise end up in court. The scheme introduces a range of innovative features that are new to this jurisdiction, such as a finite period for an agreed debt repayment programme, the freezing/reduction of interest and the write-off of residual debt on successful completion of the programme. The debtor's principal private residence is secured against enforced sale or repossession.

Source: Joint Inclusion Report 2003 of the European Commission

Agenda - | en |

Peer Review manager

Ms Thea Meinema ( NIZW )

Document Actions

Money advice and budgeting service

Host Country : Ireland

Place and date : Cork , 18. - 19.11.2004

Peer countries : Denmark - Germany - Hungary - Luxembourg - Slovakia - Slovenia - The Netherlands - United Kingdom

Peer Review manager

Related documents