When you take out a loan you have to think carefully about the conditions that apply. Is the interest at the right level, how often do I have to pay off and of course: can I afford it all? If you think about this well in advance, there is nothing wrong. But some people do not always succeed.
Debt counseling by the municipality
For them, rising debts are a problem. Local governments are now trying to do something about this. For example, the Debt Lab started in The Hague last year. The municipality of The Hague and other parties are working together on this to help people who are stuck in their debt problems. This includes all age groups. The Debt Lab has something special for young people. The Lab takes over the debts from them and in return these young people invest in themselves. They work as a volunteer and follow a course. The initiative of The Hague seems to be replicated in the other major cities.
Government debt and its value
While the average debt of people involved in debt counseling is 39,000 euros, our national government seems to make it all a lot more colorful. Many citizens are afraid that our pivotal government will saddle the children with a future debt that is untenable. Yet it is just how you look at it. What is usually forgotten is the other side of the matter. After all, the government invests the borrowed money in our society. Our ‘improved’ society will also inherit our children. Viewed in this way, they will also receive extra value in the future.
Speed with which government debt grows
The main thing is the extent to which the government exceeds its budget. As long as the speed with which the government borrows money keeps about at a pace that is consistent with the development of tax revenues, there is actually not much going on. Moreover, a large part of the government debt is also in the hands of Dutch residents. If our government repays its government bond, the money flows directly into our economy.