A new study commissioned by lending specialist Pepper Money has found that as many as 1 in 3 Irish adults have missed at least one payment on a loan such as a mortgage or credit card, and a significant proportion of this group (33%) have been turned down for a loan of some kind.

The findings are based on 500 respondents who have missed loan payments, drawn from a nationally representative sample of 1500 people.
 
The research finds that 43% admit to at least one missed payment on their personal mortgage. The most common reason cited for missing a mortgage payment was reduction in household income (43%), followed by increases in the cost of living (23%).

Nearly half (45%) of respondents who had missed a payment said they had found themselves unexpectedly unemployed in the past. The majority (83%) of those who have missed a financial payment believe that having a mark on their credit history or a previous credit rejection will make it more  difficult for them  to access loans in the future.

Over half of the respondents (53%) expressed negative feelings about their current financial situation, such as stress, pessimism, and feeling stuck while nearly half (46%) of respondents feel negative about their future credit status. 
 
Commenting on the findings of the study, Head of Sales and Marketing at Pepper Money, Barry Delane said, "Largely due to the economic crisis over the past number of years, a significant number of people found themselves in financial difficulties which may have resulted in some negative credit events. Although the majority of people are now recovered and meeting their financial obligations, many are still effectively stuck or locked out of the market and this is having a real impact on people’s lives."

He added, "The key challenge is that most financial institutions don’t take time to understand or examine every person’s individual circumstances by looking at the person and not just the paperwork."

Source: www.businessworld.ie