Debt counselors see a significant increase in people seeking help with their debts

An increasing number of people are seeking help to get their debts settles, according to Humanitas. The largest volunteer organization for debt relief in the Netherlands drew the conclusion based on research it conducted.

Humanitas Director Jerzy Soetekouw thinks the numbers are alarming. “Our volunteers and coordinators see people at their lowest point. They are the first to see the signs that the problem is a lot bigger than first imagined.”

Humanitas had their coordinators fill in a survey. Around 63 percent of them reported that their department has been busier. Just under half of the people asked said their existing money issues have worsened.

The volunteer organization supported over 24,000 people last year with severe money issues. In 2021 and 2022, they helped 13,000 and 17,000 people, respectively.

Humanitas claims that one of the reasons for the increase are those businesses which earn money from debt, like “aggressive” collection agencies. These companies raise the debt people must pay when payments are not made on time.

“A small debt can grow into a monster debt,” Humanitas explains. “In this way, money can be earned off people with debts within the legal frameworks, and you could say there is a debt industry.”

Soetekouw thinks that the government is also to blame for this. “They collect taxes, excessive surcharges, and fines with little regard for the personal side.”

The director also added that there is insufficient legislation to protect people against the debt industry. Soetekouw called on the government to “drastically” change their policies and working methods in January.

The actual number of people with problematic debts is much higher. Humanitas referred to the figures released by Statistics Netherlands that showed that more than 726,000 households have serious debts.