October 31, 2020

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Municipalities expect people to run into payment problems now | Right away

Municipalities expect people to run into payment problems now | Right away

People who did not have it on the whole at the beginning of the Corona crisis are now in danger of getting into financial difficulties. The Association of Municipal Directors Divosa, which is responsible for debt relief, warns against Kup.nl. At the same time, creditors are becoming less lenienes.

“People usually have a buffer for the first few months without income. Only when this buffer is gone do people take on debt. If we follow this line of argument, we will see that the number of debt relief applications in the figures will increase from May,” divosa said.

Together with the Association of Debt Advisers NVVK and 46 municipalities, the association monitors how many people have applied for debt relief.

This shows that the number of applications in the participating municipalities in March 2020 was roughly the same as in the previous year. Remarkably, there was even a decline in April. The figures for May and June are not yet available, but they probably show a different picture.

Creditors must remain lenienes

“At the beginning of the crisis, we found that there was a lot of coulance in terms of payment problems. Corona was then seen as force majeure, not his own guilt,” the association said.

According to Divosa, it is important that creditors and other organizations continue to connect with people at this moment, even when the first corona period is over. “Many people who have lost their income or have experienced a sharp decline come at the end of their reserves during this time.”

Divosa therefore requires a structural understanding of people in financial difficulties. “A lenient attitude of creditors offers the possibility of pressing the ‘pause button’ to create debt calm. Rapid debt relief helps people get their financial situation right.”