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 repayment of debts in a sustainable way. People get all the support they need. So they can continue with a clean slate and perspective for the future. With the money saved by this integrated approach, we can help other people. Brunssum and Heerlen signed a declaration of intent on October 30 to arrive at this innovative approach.
The Netherlands has 750,000 households with problematic debts. This means that 1 in 11 households are no longer able to pay off these debts themselves. Their monthly income is too low and they have no financial buffer. Brunssum and Heerlen have a higher concentration of debts than the national average. "Studies show that debts cause people stress and health problems and cost society billions," says Kansfonds program leader Bas Pieck. "Yet each year only about 17,000 households with problematic debts are helped."
If regular debt assistance is not possible
"In Brunssum, too, this is an issue," said Brunssum Alderman Merle Brüning. "I am very happy with the approach as we see it before us with Chance Fund. This means an additional opportunity to give families with problematic debts a fresh start. It also fits within our Program North-East. In it, a stable (financial) basis is the starting point to give people room for other things."
Arlette Vrusch, Alderman in Heerlen, adds: "In Heerlen we have virtually no grounds for exclusion for people to participate in a regular debt assistance program. Yet we see that regular debt assistance is not accessible to everyone. By adding a new pillar to our offering alongside the existing three pillars, we are helping a target group that desperately needs our help, but previously went unseen."
Unique approach
The "Settling Debts" approach differs from existing initiatives by a different use of funding. It works like this: Kansfonds, the Mia Keulaerds Fund and other financiers provide start-up capital to buy off debts. With a social cost-benefit analysis, we calculate whether the approach saves money, for example in the area of Health or debt relief. Is money saved? Then the municipality makes budget available to make new people debt-free again.
Alderman Brüning: "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," said Alderman Vrusch.