CBS: One in three people in poverty struggled with problematic debt in 2023

Nearly 163,000 people living in poverty in the Netherlands — about 31 percent of the 540,000 in this group — faced registered problematic debts in 2023, according to new figures from Statistics Netherlands (CBS). Among those with incomes just above the poverty threshold, 22 percent — about 265,000 people — had such debts. By comparison, only 10 percent of the general population experienced problematic debt.

CBS defines someone as poor when, after paying fixed costs such as housing, energy, and health care, a household lacks enough income, savings, or other disposable assets to cover other basic needs. Those considered nearly poor have household incomes up to 25 percent above the poverty line and a low financial buffer.

CBS classifies problematic debt based on multiple indicators, including debts to the Tax and Customs Administration, overdue health insurance payments, traffic fines, listings at the Credit Registration Office (BKR), and other unpaid obligations. Poor people were three times more likely to face these debts than the general population; those just above the poverty line were twice as likely.

From 2021 to 2023, the percentage of poor and nearly poor people with problematic debt increased. This rise was more pronounced among the nearly poor, partly because many welfare recipients moved just above the poverty line due to energy allowances. In 2022, 50 percent of welfare recipients who were poor in 2021 had crossed the poverty threshold, compared to 30 percent the year before.

CBS data also shows that 21 percent of people in poverty had problematic debts for three consecutive years. Among the nearly poor, 16 percent faced this persistent form of financial distress. In the poorest households with registered debt, 52.5 percent had outstanding tax bills, 39.9 percent were in arrears on health insurance, and the same percentage had debts listed with the BKR.

Among the nearly poor with problematic debts, the BKR was involved in 42 percent of cases, followed by outstanding tax obligations (36.4 percent) and unpaid health premiums (32.6 percent). Other recurring debt types included unpaid student loans, traffic fines under the Wet Mulder, and irrecoverable debts to the Tax Administration.

In 2023, three out of four poor and nearly poor households had a financial buffer worth no more than 25 percent of the poverty threshold. This means most could sustain themselves for less than three months without income. Unlike the nearly poor, poor households also faced direct income shortfalls: nearly 60 percent of poor people had incomes up to 25 percent below the poverty threshold, leaving them unable to cover basic living needs for more than a few months in the year.

The Dutch Association for Debt Assistance and Social Banking (NVVK) confirmed that the number of people with problematic debts is rising sharply. NVVK director Ruud van den Tillaar estimated that 740,000 households are now struggling with debts they cannot resolve without help.

Van den Tillaar warned that the crisis is spreading beyond low-income groups. “We’re seeing more and more middle-income households facing serious debt issues,” he told ANP. One factor, he added, is the legalization of the online gambling industry in 2021. “It usually takes eight years before people seek debt help, but we’re already seeing the signs.”

“There’s no ready-made solution, but much suffering can be prevented with early detection of small debts. We try to make contact right at the doorstep," he added. "It’s a long-term effort, but we’re seeing results—especially now that more partners are reporting overdue payments, allowing us to take action quickly.”