Understandably, the West Jutland native was almost shocked when he saw his pay slip for December.
There wasn’t much left on the bottom line, because the withdrawal percentage was set at a staggering 96 percent, and what was left to pay out was basically only the part of the income that was covered by the deduction.
West Jutland’s Jesper Kirchhecker is far from the only one who has had an unpleasant surprise in e-box.
Fortunately for him, it turned out to be a mistake – the draw percentage has subsequently been reduced to 66 percent.
But for the thousands of Danes who have received a similar message in e-box, it is not a mistake.
For the Debt Agency has taken off its velvet gloves and started the biggest debt recovery in history, and many thousands of Danes have been informed in recent months that their withdrawal percentage has been increased enormously.
For most, it has been a particularly unpleasant surprise, and many will come to accept that they will have a completely different economy in a while.
Some will be able to get out of debt quickly, but for others the situation will be completely unmanageable. The hardest hit – people with low income and high debt – will have their income reduced for many years to come.
The number of inquiries to the various organizations that offer free debt advice has increased explosively.
– Many people are surprised by how large amounts the Debt Agency can deduct from them, and then they feel powerless and frustrated that they cannot pay because they have arranged their finances for a higher payment, says Tina Thygesen, legal debt consultant and subject manager at the Consumer Council Think for TV2.
Complaining will only benefit a few debtors, because the law is clear enough.
Since the autumn, the Debt Agency has been allowed to seize up to 60 percent of the net income of citizens who owe money to the public. Before, the limit was 40 percent, but a large majority in Christiansborg decided in June 2023 that it was too low.
1.1 million Danes owe the state money for SU loans, child benefit, fines and quite a lot else. Most of them pay off the debt, but a large minority have for years ignored the inquiries and closed their eyes in the hope that the treasury would one day take pity and draw a line on the culprit.
For a number of years it also seemed that the ostrich tactic would work. The failed and expensive recovery system, EFI, forced Skat to pause recovery indefinitely, and meanwhile the Danes’ debt just grew.
But now – following many wasted millions – we have got a system that works.
It was also regarding time.
In total, the debt is now 150 billion kroner, and that money will undeniably add to the state coffers. As you know, there are a number of places where they might do good.
If you have debt, it must be paid – regardless of whether it is to individuals or to the community fund. A debt to the state is a debt to the community, and it must of course be recovered.
Because if it didn’t happen, many, many more people would stop paying their debts and the community would go bankrupt.
2024-02-25 05:00:49
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