New approach for people with problematic debts
The municipalities of Brunssum and Heerlen want to participate in a new approach by Kansfonds for people with problematic debts: Settling debts. This means: the early and unconditional settlement of debts in a sustainable manner. People receive all the support they need. This allows them to start with a clean slate and prospects for the future. With the money saved by this integrated approach, we can help other people. Brunssum and Heerlen will sign a letter of intent on October 30 to implement this innovative approach.
The Netherlands has 750,000 households with problematic debts. This means that 1 in 11 households is no longer able to repay these debts themselves. Their monthly income is too low and they have no financial buffer. Brunssum and Heerlen have a higher concentration of debt than the national average. "Studies show that debt causes people stress and health problems and costs society billions," says program manager Bas Pieck of Kansfonds. "Yet only about 17,000 households with problematic debts are helped each year."
If regular debt assistance is not possible
"This is also an issue in Brunssum," says Brunssum Alderman Brüning. "I am very pleased with the approach we are seeing with Kansfonds. This means an extra opportunity to give families with problematic debts a fresh start. It also fits in with our North-East Program, which is based on the principle that a stable (financial) foundation gives people room to focus on other things."
Arlette Vrusch, Alderman Heerlen, adds: "In Heerlen, we have virtually no grounds for excluding people from participating in a regular debt assistance program. Nevertheless, we see that regular debt assistance is not accessible to everyone. By adding a new pillar to the existing three pillars in our offering, we are helping a target group that desperately needs our help but has previously been overlooked."
Unique approach
The 'Settling Debts' approach differs from existing initiatives in its use of financing. It works as follows: Kansfonds, the Mia Keulaerds Fund, and other financiers provide start-up capital to buy off the debts. We use a social cost-benefit analysis to calculate whether the approach saves money, for example in the area of Health debt assistance. If money is saved, the municipality makes funds available to help new people become debt-free.
Alderman : "This creates a snowball effect. With this more humane and effective approach, we want to break through the debt problem" – "and ensure that people are offered sustainable prospects, so that their debts are no longer a heavy burden on their shoulders," says Alderman .