People over 45 more likely in debt troubles

Individuals who undergo debt restructuring of their are increasingly aged 45 or above. Divorces and a decline in income are the most likely causes of a growing number of restructuring cases, and older individuals are finding themselves in difficult financial situations more frequently, reports Statistics Netherlands (CBS). A total of 12.3 thousand individuals were eligible for debt restructuring in 2014, which constitutes an annual decline of one percent. Those aged between 45 and 55 represented approximately 29% of all restructuring cases, up from 18 percent in 2002. The proportion of 45- to 55-year-olds in debt grew faster in the last 12 years than the overall share of the group within the population. CBS argue that the group is the one struggling mostly from the current economic conditions. Unemployment is still rising, and a disproportionate share of the long-term unemployed falls within this age group. The number of approvals for debt restructuring is declining for the third year in a row. This is likely related to the changes in the legal framework adopted in 2012. Since that time, individuals have to go through a debt settlement process with their municipalities before they are legally admitted for restructuring. The requirements imposed by municipalities have also become stricter over time, which inhibits progression to the legal process.