Up to 10,000 customers in mortgage arrears could have their homes repossessed.
The Central Bank says that four in ten borrowers in long-term arrears haven’t engaged at all with their lender.
It comes as a new report warns that many people don’t know enough about their personal finance resulting in bigger debt and higher interest rates.
The latest figures show 44% of loans in long-term arrears are now over five years past their due date.
25,000 mortgages are at least two years in arrears.
The Central Bank has warned that the problem continues to make the economy vulnerable.
— Central Bank of Ireland (@centralbank_ie) April 10, 2018
Finance Minister Pascal Donohoe says those in difficulty need to seek help, advising: "Engage with the bank.
"The code of conduct in mortgage arrears is in place to ensure that a strong level of protection is available - but in order to avail of that level of protection, you must engage with the banks."
It comes as a new report from policy group the Collins Institute shows the majority of people don’t have a clear understanding of personal finance such as pensions and loans.
The report also calls for an online course to be independently run to help people make better decisions about their money.