Budget institute Nibud calls for single monthly payment day to help manage finances

The Dutch financial advice agency Nibud is calling for all fixed monthly expenses to be paid on a single day, ideally shortly after salaries are received. This would help individuals better manage their money and reduce financial stress, Nibud director Arjan Vliegenthart said following recent reports in AD.

Currently, fixed costs such as rent or mortgage, health insurance premiums, utilities, and phone bills are deducted throughout the month. This staggered payment system reportedly makes it difficult for many people to keep track of their expenses and risks causing financial problems.

“It would be much easier if all of those were deducted on the same day, just like when all benefits and income are transferred on one day,” Vliegenthart explained NOS. “If you don’t leave too much time between those transactions, people quickly know what they have to spend for the month.”

Major fixed costs like rent or mortgage payments are usually withdrawn soon after the salary arrives. Vliegenthart wants other fixed expenses to follow the same schedule. Ideally, benefit payments like housing allowance and healthcare allowance would also be settled directly with the landlord or insurer. “But that is not organized that quickly yet. I think a single payment day is easier to arrange in that regard.”

The CBS shows that the number of people with registered problematic debts has been rising again over recent years. After a sharp increase in 2022 and 2023, debt levels continued to rise slightly in 2024.

Earlier this year, the Dutch association for debt counseling (NVVK) reported a surge in requests for financial help. The increase is attributed not only to rising costs but also to the popularity of “buy now, pay later” services.

More people are seeking assistance, but the NVVK estimates that many more should come forward. “Over 80,000 people are currently registered, but around 730,000 in the Netherlands suffer from problematic debts,” an NVVK spokesperson said.

Vliegenthart acknowledged that a fixed payment day will not solve all debt problems but believes it will help people better understand their finances. “It becomes easier for people to know where they stand. That gives them more control over their money and hopefully over their lives,” he told NOS.