Dutch public getting deeper in debt

30th September 2004, Comments 0 comments

30 September 2004, AMSTERDAM — The number of people in debt in the Netherlands has doubled in the past three years, with 170,000 households deep in arrears this year, it was reported Thursday.

30 September 2004

AMSTERDAM — The number of people in debt in the Netherlands has doubled in the past three years, with 170,000 households deep in arrears this year, it was reported Thursday.

Television discussion programme Rondom Tien based its findings on information gathered from agencies that help people who have severe debt problems.

The rise in the number of outstanding debts corresponds to the sharp growth in the number and types of credit being offered by banks, credit agencies, shops and other organisations, Rondom Tien found.

In July alone, EUR 216 million in new loans were granted to consumers. The Dutch central bank DNB said this is 75 percent more than in the same period last year. The Dutch public has currently EUR 21 billion on the books in loans for household consumption.

It is estimated that households deep in debt owe on average EUR 15,700, spread over 11 main creditors, including credit card companies and shops with client cards.

Just under 10 percent of households are repeat chronic debtors —they cleared their arrears after professional advice, only to build up a new debt burden. Another 7 percent were on a debt-clearance programme before, but dropped out before repaying what they owed.

Some 6,600 households managed to escape the debt trap last year after receiving professional advice on how to restructure their financial affairs.

People with debt problems can seek information and advice from their local Bureau Schuldhulpverlening office.

[Copyright Novum Nieuws 2004]

Subject: Dutch news

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