There are regular programs on television that tell the story of a family with large debts. The program and a budget coach together ensure that the debts are resolved or at least become manageable and are placed with one creditor. Many Dutch families have large debts or are still experiencing problems. The problem is often that a spending pattern is maintained that does not match the income. They spend too much in relation to their income. Increasing unemployment will cause more and more families to get into trouble. The expenditure pattern is then much too high compared to benefits. It is difficult to adjust an adjusted spending pattern again.
How debts arise
Problematic debts arise very gradually. It often starts with a credit taken out to finance large purchases. These charges are not too heavy to bear and the charges are paid neatly every month. In these types of cases, the debts are often based on the maximum amount that can be borrowed based on income. As soon as these families experience financial setbacks, even greater debts arise. Another cause of problematic debts is the lack of overview. Families often do not realize how bad their financial position is and continue to spend a lot of money.
Solutions for drastic savings
To resolve debts, monthly expenses must first be put in order. As long as more is spent than comes in, the problems cannot be solved. The following tips can help you get out of debt.
1) Annual tax return
Not all Dutch people receive a mandatory annual tax return form from the Tax Authorities. These people will not apply for this themselves, for fear of claims from the tax authorities. As a result, many families with their own homes leave money behind. The tax authorities themselves already collect taxes through the salary or benefits. You can try to get part of it back by completing a tax return.
2) One creditor
Having multiple creditors causes many problems. It is best to choose only one creditor instead of several. It is wise to find a bank willing to take out a loan for the full amount of debt. It is easier to make good agreements with one party than with several. You must be particularly careful with creditors such as the housing association and the mortgage bank. Before you know it, the house will be evicted or forced to sell because you really cannot pay the monthly costs
3) Working with cash books
Consumers unknowingly spend too much money on nonsensical things. By keeping a cash book you can see exactly where your money has gone. You should also write down small expenses in detail in a cash book.
4) Back to basics
To eliminate debts quickly, you must return to basic services. What expenses can you save on? Expenses that make life more enjoyable should also be saved. The weekly dinner out must be canceled and you will have to stop smoking. You must realize that there is no more money for luxury items.