A new study has revealed that Irish people pay 14% more than UK residents for rent and clothes causing consumers to suffer more. Irish consumers are paying more for groceries, rent, fashion and cars among many other household goods and services according to a Provident Personal Credit study.
This is despite the small difference in wages between Irish people and their neighbours. The average wage in Ireland is £1,920.51 which is £107 more than in the UK. This slightly higher wage isn’t enough to cater for a higher cost of goods and services.
Key concerns: Rent, Fashion, Cars, and Fuel
Rent is a massive problem in Ireland given Irish people pay 51 to 53 percent more than their counterparts in the UK. The ever-rising cost of rent has caused many Irish residents into homeless shelters as the Irish government comes under immense pressure to provide a solution to the problem.
Although London is considered one of the most expensive places to live in the UK, Ireland is more expensive, and the costs extend to clothing as well. Fashion lovers in Ireland also have to pay more for clothes than their UK counterparts.
A pair of jeans costs £64.80 which is £8.40 more than the cost of a similar pair in the UK. Shoes aren’t cheap either with a pair of mid-range Nike running shoes costing £68.52 which is £8.56 more than the cost of the same type of shoes in the United Kingdom.
Even cars are more expensive in Ireland. A Volkswagen Golf (e.41) costs £18,000 in the UK while Irish residents have to pay £21,000 for the same car. What’s more interesting is; the cost of maintaining cars is the same whether you live in the UK or Ireland. Fuel is more expensive although the difference is small. The average cost of petrol in Ireland is £1.18 per litre which is about the same in the UK.
Consumer Association of Ireland (CAI) sentiments
According to the C.E.O of the CAI, Dermot Jewell, the price differences between essential goods is depressing. Jewell states it is difficult to comprehend why Ireland is still paying way above the odds compared to its nearest neighbour. He states that there are other players in the market yet the Irish people keep paying more for essentials. Jewell blames overseas players for their refusal to break down and offer price structure analysis and the reasons justifying charging Ireland residents so much more.
Coping with a high cost of living
When essentials become expensive, it is easy to plunge into debt. Many people in Ireland are already dependent on payday loans among other types of short- term loans for survival. Here are useful tips to help you reduce over-dependence on payday loans, overdraft loans, credit card loans, etc.
• Buy in bulk: You can enjoy huge discounts if you buy household goods in bulk. Although you need a considerable amount of money to do this in the beginning, it is possible to shield yourself from high prices when you buy things like clothes and household goods in bulk. This tip can also work for fuel.
• Compare prices: You’ll also need to do a bit more research before buying anything. Although the cost of living in Ireland is high, it is still possible to find stores which have better prices than others. It might be a bit more work on your side, however, this tip can save you thousands of pounds yearly. Furthermore, it is easier to compare prices today considering most companies have an online presence and almost everything can be bought online. You just need to go online and compare the prices of clothes in the most popular clothing stores in Ireland to get a good discount.
• Consider savings over loans: It is always cheaper and more convenient to use your savings instead of taking a payday loan or other short term loans. If you haven’t set up a savings account, do so immediately. Over-reliance on debt can make life unbearable especially when you are living in a place like Ireland with a skyrocketing cost of living.
• Consider home ownership over renting: When the cost of renting a home is too high, it is advisable to think of becoming a homeowner. There are many home- ownership programs in Ireland including rent-to-own that make the cost of rent more bearable since your payments go into owning the home.
Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.