September 23, 2019
Ruud van den Tillaar: 'Having debts is complicated'
Kredietbank used to be a bank for the poor. Today, it's a social institution that helps people in financial trouble. But very occasionally, loans are granted. Kredietbank Limburg offers debt counseling in the broadest sense of the word. Director Ruud van den Tillaar explains the complexity of debt issues.
"National figures show that 1.4 million households have problematic or risky debt. Of those, we only have insight into 200,000 households," says Ruud van den Tillaar. "When you consider the stress caused by debt, you realize how extensive the problem is. People's IQs decline, they become less sensitive to their surroundings, and can only see the short term. When you then know that there are 1.2 million households without any support, that's worrying."
Out of sight
The reason so many households are out of sight is complex, according to Van den Tillaar. Shame is a factor, but the government's handling of the debt issue, in particular, prevents people from understanding their situation and raising the alarm in time. "The government has many different guises and just as many working methods. The Tax and Customs Administration, the Social Insurance Bank, Social Services, the Education Executive Agency (DUO)—they're all part of the government. If someone doesn't pay a traffic fine, a fine is added to the original fine. Fines are piled on top of fines, and in no time, you're left with a substantial debt. That's how many government services operate. It's better if, in the event of late or non-payment, they're informed whether someone can pay, and if the debt collection is temporarily suspended if it becomes apparent that it's a problem."
Multi-headed monster
Being in debt is complicated, let alone solving it or asking for help. Ruud van den Tillaar: “Many people in debt experience the government as a multi-headed monster and don't ask for help with that same monster. Moreover, it appears from investigation by the National Ombudsman That the barrier to applying for debt counseling from the government is far too high. You have to deal with a mountain of forms and supporting documents, but if you were that good at administration, you wouldn't have ended up in debt trouble.
Just start
The debt problem and the government's approach to it are therefore extremely complex. This is especially true for people suffering from debt stress, which lowers their IQ and makes them unable to see the long term. Is there a solution? "At Kredietbank, we try to make our process as user-friendly as possible, always starting with the question of what we can do for someone. The government should take responsibility. For example, by contacting someone who doesn't pay their fine and referring them to help. South Limburg is known for its poverty problem and intergenerational poverty—meaning that children who grow up in poverty are themselves destined for poverty—is a major problem. We'll have to come up with something to break through that. You just have to get started. You can think and research for a long time, but we do know what's true."
Collaboration is the key
Van den Tillaar believes it helps when municipalities and institutions collaborate. “We collaborate with 20 municipalities and with institutions like SchuldHulpMaatje and welfare organizations. Because many people are struggling with debt problems. If you join forces, you can make progress. And if we demonstrate in our services that we look at people with an open mind and take them seriously, we can make a difference. The Ombudsman recently put it beautifully: as a government, you must be honest, straightforward, and understanding by 2030. That sums it up for me.”
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