One in five households has serious payment arrears. More than half of them can pay off the debt in the foreseeable future, sometimes with the help of bailiffs and debt collection. A significant proportion – according to the latest CBS figures, 7.6 percent of all households – need professional help to solve their debt burden. That amounts to almost 600,000 households.
The debt problem of this group is so complicated and high in relation to income that it is not realistic that these people will pay off those debts without a remission, says Nadja Jungmann, professor and lecturer in debt problems. “But a majority of this group is not in the picture with aid. These people plod on.”
“It is always important to realize that every household has its own story, but there are groups within it,” says Jungmann. “Low incomes are overrepresented, but also single people. And people who have a life event experienced – a life-changing event – such as a divorce. You are then more financially vulnerable and then a financial setback can cause problems sooner.”
Cancellation of debts by the municipality
The cancellation of debts is regulated by the Municipal Debt Assistance Act (Wgs) and the Natural Persons Debt Rescheduling Act (Wsnp). First, it is examined whether the municipality can take over the debts. If creditors disagree, the court can be used.
Someone with debts then has to deal with only one creditor – the municipality – and that already provides peace of mind. After three years, the remaining debt is canceled and you can start once more with a clean slate.
One of the conditions for a new start is that you make every effort to pay off the debts during those three years. “You get weekly pay that you have to do everything for; you have to commit to have paid work and you lose your car if you don’t need it for your commute,” says Jungmann.
But many people are unwilling or unable to make those sacrifices. “Those people cannot go back to a weekly allowance of 65 euros per week. I also give it to you. You have to pay everything for your family from that. Especially with the current prices, that borders on the impossible. In addition, adult children living at home have to pay board money , and therefore contribute to the debts of their parents.”
Three years to change your behavior
They seem heavy rules, but they are also intended to create peace for a while and to work on behavioral change, says Farley van Heydoorn. He is an expert by experience and fled from his debts for years. Van Heydoorn sought and found help, following which he became a debt counselor at the municipality of Utrecht. He now provides information, advice and training from his own company.
“Those three years in debt assistance really helped me,” says Van Heydoorn. “I don’t see it as a fine or punishment, but I had to adjust my behavior. I had to learn to live on 50 euros a week at the time. The first half year is difficult, but the second half year you already know where you are going. best to do your shopping. Now, seventeen years later, I can still apply that.”
Van Heydoorn understands that you have to sell your car if you don’t necessarily need it. “With this you can pay off a large part of your debts, and your mother can often also be reached by train. A car can also get you into trouble once more, due to fines or unexpected repairs or an MOT, which you then buy on credit. “
Your brain wants you to be happy
The threshold for seeking professional help is high, also because there is still a taboo on debt problems. Van Heydoorn took the step when he got into a relationship that held him accountable for his debts. This made him feel pressured to seek help.
“If people stay behind closed doors, it will remain taboo,” he says. “What do you need to realize that you are not stupid or crazy? Information. But people don’t dare to ask, neither did I.”
In Raalte, Overijssel, the volunteer organization Humanitas has started a teaching program for financial self-sufficiency developed by Van Heydoorn, specifically intended for debtors who are preparing for the debt relief process.
“It’s good to explain to them that your brain works differently under the influence of chronic money stress. Your oldest brain tries to keep you alive, so it prioritizes basic needs like food, drink, rent and clothing. But your brain says also to you: buy those expensive shoes so that you can be happy for a while. For the outside world you do stupid things, but you are not crazy. “
Ask the municipality for help
Although the municipality itself can also be a barrier, it is the first and, according to Van Heydoorn, the only place you need to be to get a final discharge or a clean slate.
“If you search the internet for the phrase ‘I have debts I need help’, the commercial companies that earn money from debt relief will appear first. Only the municipality can ensure that your residual debt is canceled following three years. And they have it mandate to use leverage to persuade creditors to cooperate. That is a great asset. You will not find that anywhere else in the world.”
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