In the Netherlands you from your 18 th according to the law of majority. This is the moment when you have a lot of obligations. You are obliged to pay your own health insurance and you are obliged to pay tax every year. In addition, 18 years is an age at which you can suddenly do all kinds of things.
You can get your driving license and then go on the road. You can vote in the second chamber elections. In addition, you can take out a subscription yourself without your parents’ permission and you can also take out a personal loan with the bank. You can also apply for a red balance on your bank account without having to ask anyone for permission.
It is easy to get into debt
All these freedoms and obligations create an environment in which not everyone can live equally well. When it is so easy to apply for a loan or a redemption in your bank account, and when it is fairly easy to purchase an expensive item of use such as an installment car or moped, it is difficult not to get into debt.
When you take out a loan, an income check is usually done. It is checked whether you have no over-credit, and whether you have no negative BKR listing with your name. When the loan repayments, the payment of your taxes and your monthly fixed costs such as your mortgage or rent, gas and electricity are at stake, it is time to get help.
From that moment, both the collection agency and the bailiff know how to find your door flawlessly to come and collect. Your things are being seized and an income seizure is also being done. You are as it were plucked bald because you can no longer pay your debts. This is the moment why people speak of problematic debts. Often you are then forwarded to the municipality by the energy company or by the tax authorities.
The municipal bank as a solution for debts
Municipalities have set up the municipal Bank for this. This is a social counter that is run by employees of the social service of a municipality. Help is available here for people who can no longer keep their heads above water because their income is too low compared to the debts that have to be paid monthly.
The municipal Bank is a place where a social worker conducts an intake the moment you report yourself at the counter. Together with you, the social worker maps out the amount of income you receive on a monthly basis, and this person also looks at the fixed costs you must pay each month. Whatever amount you have in addition to debts that must be repaid is another matter that is being examined.
How does the municipal bank work?
As soon as it is clear that you are unable to pay your fixed costs and your debts with your income, the municipal bank will assist. The municipality will draw up an agreement with you that states that all your income will be deposited into the account of the municipal bank. Then a payment arrangement is made with the creditors. The collection through the bailiffs and the collection agency is stopped, and the debt is paid off by the credit bank from that moment.
From your income you receive a weekly amount to your account which acts as a living allowance. This amount is often just enough to make ends meet. You can do your shopping at a cheap supermarket and now and then something remains to be able to buy clothes for your children. The fact remains that you should be able to do much less in the coming years until the debts have been fully paid off.
The moment a few years have passed and you are able to start with a clean slate, you will again have full access to your income. The debts are all settled at that time, and any outstanding amounts are often waived. Because of this you are able to rebuild your life without debt.
No debts, but a credit quickly
We were talking about debts being repaid by the communal Bank, but there may be another reason why you go to the communal bank. In that case you can think of a situation in which you make ends meet with your income and you have no debts. The moment the washing machine breaks down, you have a problem. Often you have no money in a savings account to buy a new washing machine.
In that case you can go to the same municipal bank and apply for a short credit. You borrow the amount you need at that moment and you pay it back within the time limits that you need to handle. You do, however, owe interest to the municipal bank. Naturally, the municipal bank will also look over your shoulder to ensure that you do not enter into a debt that you cannot pay off in proportion to your income.
A credit that you take out with the municipal bank can be a small credit, whereby you can think of an amount of 250 euros. From that price, rising to the amount that you can repay and what is most needed at that time, you can take out a loan.
The municipal bank is therefore a counter where you can go when you are in financial trouble. However, it can do no harm to act before the bailiff and the collection agency are deployed by the creditor. The reason for this is that these cases entail additional costs that also have to be repaid at a later stage.