CRIPPLING SCHOOL COSTS DRIVE PARENTS INTO THE HANDS OF LOANSHARKS

PARENTS STRUGGLING TO REPAY 200% INTEREST CANNOT AFFORD ESB, HEATING AND EVEN FOOD

CASH-STRAPPED parents struggling to meet the financial demands of getting their children back to school in Kerry are turning to moneylenders and forgoing vital bills like ESB, heating and sometimes even food.

The Society of the St Vincent de Paul (SVP) is currently dealing with numerous incidences where under-pressure parents have resorted to moneylenders to cover the cost of school essentials and find themselves struggling to repay shocking interest rates as high as 200 per cent.

A recent report from the Irish League of Credit Unions shows that 14 per cent of parents in debt have turned to a moneylender to cover back to school costs, which its says now averages over €1,000 per child.

The SVP is urging families in distress to avail of their help and avoid moneylenders at all costs.

CASH-STRAPPED parents struggling to pay the rising costs of getting their children back to school are turning to moneylenders as a last resort, the Society of the St Vincent de Paul has warned.

The result is seeing parents forced to repay up to 200 per cent interest to loan sharks, thus having to forgo other vital bills like ESB, heating and sometimes een food.

Junior Locke of the Tralee Branch of St Vincent de Paul (right) said that he and his colleagues have dealt with numerous incidences where under-pressure parents have resorted to money-lenders to cover the cost of school essentials and find themselves struggling to repay the huge interest rates - one family in particular who he found was going without proper meals.

“There’s a pile of this going on, especially around now as parents struggle to get children back to school. We see it all the time. I had a couple of cases of it myself during the week,” Mr Locke said,

“I spoke to a family last week who were living on Cornflakes. There is no need for that in this day and age. Because the interest rates can be as high as 200 per cent, parents then find themselves going without other essentials such as ESB and heating to make sure the debt is paid back.”

A recent report from the Irish League of Credit Unions shows that 14 per cent of parents in debt have turned to a moneylender to cover back to school costs while nine per cent would consider that option this September.

Mr Locke is appealing to those struggling with back to school costs to refrain from using a money lender, saying there are several alternatives out there to help ease the burden.

“There are so many ways to get help nowadays. Obviously people need only pick up the phone to us or pop into our office and we’ll assess everyone’s situation and see what can be done,” he said. “There is no reason to resort to money lenders.

“Then of course, for those who don’t feel comfortable coming to us, there is the new micro loan scheme operated by the Credit Union which is a great initiative well worth looking at. People can borrow as little as €100.”

Aside from Christmas, back to school is probably the busiest time of year for the St Vincent de Paul, Mr Locke says, as parents feel overwhelmed and panicked by so many costs at the same time.

While many may have qualified for the back to school grant, this money is often spent on other essentials before September, he explained.

“That (grant) comes in the summer and is often gone so fast that when September comes around it’s panic stations, because parents suddenly don’t have money for uniforms, books, footwear and transport,” he said.

“Then you have the voluntary contributions they are expected to make to the schools - often at least €50 per child - so it all adds up and can be overwhelming.”

Mr Locke said that the St Vincent de Paul would support any calls to standardise school uniforms, saying that the cost of branded, school-specific uniforms are ‘costing families a fortune.’

“You can walk into Dunnes or Aldi and get a cheap uniform and this option should be open to everyone,” Mr Locke said.