Dutch households incur more debts

7th January 2005, Comments 0 comments

7 January 2005AMSTERDAM — Over half of all Dutch people find their financial position worsened in 2004, yet fewer people cut back on their spending. This has led to more households running up debts to make ends meet, according to a new report.

7 January 2005

AMSTERDAM — Over half of all Dutch people find their financial position worsened in 2004, yet fewer people cut back on their spending. This has led to more households running up debts to make ends meet, according to a new report.

Nibud, the national institute for budget information, also said in its annual report that the gap between the rich and the poor increased in 2004, compared to the year before. The organisation advises members of the public how to trim spending.

It said people on low incomes were particularly prone to engaging in "risky behaviour": half were more often in the red in 2004; a third ignored bills and about 25 percent borrowed money.

Nibud said people on lower incomes were also more likely to experience a drop in their purchasing power than people on higher salaries because the former were less likely to get a pay rise in 2004.

Over a quarter of the people Nibud talked to expect their financial situation to improve in 2005.

[Copyright Expatica News 2005]

Subject: Dutch news

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