knowledge of financial products, and the key factors influencing their choice and purchase
of particular products. Finally, the “Staying Informed” section considers whether and how
often respondents monitor financial topics. This section also asks people about how they
have dealt with complaints to shops, suppliers and financial firms.
3.1.1 Questions on Financial Distress
The Financial Capability Survey asked respondents several questions about their financial
situation, and I use this information to derive measures of financial distress in the sample.
I begin by defining financial distress as a situation where individuals report that they are
having some degree of difficulty keeping up with their bills and credit commitments. Later,
I assess more extreme forms of financial distress such as how often people run out of money
and whether or not they have fallen into arrears on loans and credit commitments for a
period of three months or more. At this stage, the question from the Financial Capability
Survey that I use to identify people in financial distress is as follows:
Which of these statements best describes how well you and your partner are keeping
up with your bills and credit commitments at the moment?
1. Keeping up with all bills and credit commitments without any difficulties.
2. Keeping up with all bills and credit commitments, but it is a struggle from time-to-
time.
3. Keeping up with all bills and credit commitments, but it is a constant struggle.
4. Falling behind with some bills and credit commitments.
5. Having real financial problems and have fallen behind with many bills and credit
commitments.
6. Don’t have any bills or credit commitments.
7. Don’t know / Refused.
Table 1 shows the distribution of the responses to this question among the sample. In
both Ireland and the UK, just over 60 per cent of the sample report that they are having
no difficulties keeping up with all their bills and credit commitments. Just over a quarter
of the sample in both countries report that they are keeping up with all their bills and
credit commitments but that they struggle to do so from time-to-time. About 7 per cent
of both samples report that they find keeping up with their bills and credit commitments