Debtors don't want to pay
28 July 2005, LEEUWARDEN – People's motivation to get out of debt has dropped considerably, director G Jaarsma of the Gemeentelijke Kredietbank (GKB) in Friesland, said on Thursday.
28 July 2005
LEEUWARDEN – People's motivation to get out of debt has dropped considerably, director G Jaarsma of the Gemeentelijke Kredietbank (GKB) in Friesland, said on Thursday.
Sixty percent of debtors who apply to the GKB in Friesland for debt reconstruction drop out because they do not want to give up luxury goods.
"There are people on public assistance who don't want to sell their cars while they're in debt. That's too crazy for words, because often they don't need a car at all," Jaarsma said.
Jaarsma, also the chairman of the Nederlandse Vereniging voor Volkskrediet (NVVK), said he thinks the same thing is happening around the country.
The 39,000 debtors in the Netherlands who sought help in 2004 had an average of eleven creditors each whom they owed EUR 16,000.
Jaarsma estimated the number of applicants was the same this year but the amount of debt had gone up by EUR 1,000 or 2,000 "because rents and energy costs are rising."
He said 20 years ago, when the money-lending institutions known as GKBs first appeared, debtors were much more motivated to get out of debt.
"But now many clients see a television, computer and car as primary necessities of life," he said. "We do not want to abandon our principles, so the pressure on debtors must be raised."
The GKB cannot take action to put pressure on debtors, he said. "But the city can cut the amount of assistance. Many cities don't want to do this, because those people then just get into more trouble. As an alternative, the city can make a deal with a housing foundation, and it can act when a debtor refuses to pay," Jaarsma said.
He said threats of eviction should be used to press debtors to pay.
The GKB in Friesland has made such an arrangement with the municipality of Kollumerland.
[Copyright Expatica News + ANP 2005]
Subject: Dutch news