Most Dutch with payment problems have no savings: study

About 70 percent of people in the Netherlands who have problems paying their bills have little to no savings, according to a study by the national institute for budget information Nibud. Having savings is one of the most crucial ways to prevent payment problems, the institute says in its report. The level of income does not seem to be influence money problems, ANP reports.

Nibud urges people to make sure they have a bufer of savings. Set aside 10 percent of monthly income, the institute advices. Currently only 40 percent of households save a fixed amount every month.

Impulsive behavior, poor administration, focusing only on the short term and the lack of financial education also increase the chance of someone having problems paying his bills. "People who handle their money systematically have less financial problems than people who do not", Nibud writes.

Budgeting is another important way to prevent financial problems. Nibud advises that people make a proper budget at least once a year. Currently only 45 percent of Dutch households do so.