One debt can quickly push young adults into financial trouble: report

One debt is often enough to push young people into financial trouble, the research program Pointer found after talking to the country’s three largest debt collection and bailiff organizations. Over a quarter of young adults incur a second debt shortly after the first one, even if the first one hasn’t been paid off yet. Health insurance is the downfall of many.

Pointer spoke to GNN, Flanderijn, and Syncasso about how often a young person’s first debt leads to a pile-up of debts. Their figures show that 28.6 percent of young adults incur additional debt within two years. For 48.5 percent, problems paying their health insurance started their debt problems.

All three debt collectors have noticed an increase in the number of young adults with debts in recent years. “Many young people have to deal with rising costs of living, uncertain income, and sometimes a lack of financial knowledge,” Syncasso CEO Michaël Brouwer said. “In addition, impulse purchases and insufficient insight into their financial situation can cause them to get into trouble.”

“Worrying figures,” Flanderijn director Michel van Leeuwen told the program. “If you do not resolve your debts in time, they can have a major impact on your future. Think of not being able to buy a house, but also stress and health problems.”

GNN director Arno Flanderijn expressed similar concerns. “The fact that the figures are so high is worrying. This group is at the beginning of their working life and without the right help, it will be difficult to catch up on the financial deficit.”