Municipalities in the Netherlands currently place the responsibility for seeking help when in serious debt largely on citizens themselves. But those who need this help the most are often least able to take that step. This is reflected in the statistics: the number of households in the Netherlands with debts rose to more than 747,500 in 2024, yet earlier research found that of the 1.4 million people with debts, only 193,000 were known to official debt assistance services in 2014. National government research confirms that only a small number of people with debts actually seek help from municipalities, underlining that this is a growing societal problem. 

Municipalities are legally required to offer debt assistance under the Municipal Debt Assistance Act (Wgs). Residents can receive help either by asking for it themselves or through early signalling; this blog focuses on the former. Once a resident contacts the municipality, a meeting is scheduled within four weeks to draw up a plan of approach, in the form of a payment arrangement or budget management. If creditors do not agree to this plan, a statutory debt restructuring process (Wsnp process) can follow. 

Groups with a higher risk of debt

Certain groups face a higher risk of debt. These include people with a mild intellectual disability, a migration background, or reduced literacy skills. People with a mild intellectual disability can struggle to grasp their debt situation. People with a migration background often face debt due to a weaker working position linked to language barriers, cultural differences, and discrimination.

Distrust, shame, uncertainty, and cultural or language barriers also create a threshold to seek help. People with reduced literacy skills struggle to understand written information and often lack support, which can cause stress that makes dealing with debt harder. The stigma around having debts is another factor that further discourages many people from seeking help. 

Limited effects of early signalling 

Municipalities are increasingly focused on early signalling to identify emerging debt problems sooner, but research shows that this approach has had limited effect. Debt problems persist due to three systemic issues: an inadequate social minimum, a collection system that causes costs to escalate quickly, and a threshold for seeking help that is too high. Statistics Netherlands (CBS) figures show that roughly five out of six households with debts never reach municipal debt assistance services. Research by the Verwey-Jonker Institute confirms this is not because help does not exist, but because people are not aware it is available, they hold a negative image of debt assistance or don't see themselves as ‘someone with debts’. 

Municipalities themselves recognize the need for improvement. Already in 2024, the Association of Netherlands Municipalities (VNG) called for a more tailored approach, while stressing that this only works if the right preconditions are in place. In short, the problem is not so much a lack of help, but more the access to it. Solutions must focus on lowering that threshold. 

A more personal approach

Ideally, municipalities would offer more personal contact with people in debt, although limited capacity makes this difficult. Since the barrier lies in access rather than availability, many obstacles can be addressed through small changes to municipal websites. For example, improving readability and accessibility and giving more attention to mental health, the step toward seeking help would feel smaller. 

Municipalities could add a language button to their website, as Nibud has already done, to translate content, explain terms, simplify text, and read it aloud, alongside large fonts and dyslexia-friendly typefaces. This matches research findings: people with a mild intellectual disability need simple communication and help with forms, while people with a migration background or limited literacy benefit from short sentences, visuals, and translation tools.

Practical improvements for tailored support

There should also be a clear overview of the various ways to get in touch, preferably through email, DigiD, phone, or post. Research into Amsterdam’s ‘Vroeg Eropaf’ approach confirms the value of diverse contact methods: a QR-code video does not work for everyone, whereas written contact or a phone call is more accessible. 

Municipalities could alternatively offer a walk-in consultation hour for people who need personal contact. This would be especially valuable for people with a mild intellectual disability as they could get tailored support directly. Research on support offered by workers who have lived experience of debt (ervaringsdeskundigen) shows personal contact is effective: it lowers barriers, builds trust, and helps clients stay engaged and repay more. Another improvement could be to add mental health tips to municipal websites.

All these measures could be taken by municipalities to help people feel heard and lover the threshold to reach out. While these ideas sound nice in theory, the real question is whether municipalities will be able to implement them. It is our belief that these are relatively easy changes that every municipality can and should be making. We understand that municipalities are often overwhelmed, but these small changes can have a big impact, which will result in a lower workload later on. 

This blog was written as part of an honours research internship with the research of mr. dr. J.M.W. Pool on insolvency law as an instrument to reduce problematic debts.