The Credit Registration Office has been arguing for a long time for a national system for registering all debts. BKR currently only records loans and any backlogs. Mobile phone subscriptions are also registered at BKR in many cases, but due to a conflict with a number of large telecom providers, these are not all registered anymore.
BKR notes that the number of people with debt problems has risen considerably in recent years. Debt problems often get out of hand because people try to resolve existing debts by taking out a loan. In other words, try to fill holes with holes. The result is almost always that people get into trouble so deeply that debt assistance ultimately offers the only way out.
BKR states that it would be better if rental debts and debts were also registered with insurance companies. In this way, debts would come to light sooner. At present, someone with all kinds of payment arrears can still often get a loan, as long as it does not concern arrears on other loans. The moment there is more insight into the total debts and payment arrears of someone, it can be prevented that someone goes further into debt to settle other debts.
Mini-loan is also increasingly causing problems.
Mini loans have been controversial for some time because of the high costs that are charged. In general, it is already financially weaker families who use the mini-loan out of necessity. Often this happens to pay a bill that really can no longer remain. The result is often that the same families have a bigger problem a month later, because the mini loan plus the high costs have to be paid back in one go.
Several large collection agencies indicate that they are increasingly confronted with people who are unable to repay a mini-loan within the stipulated period. This leads to further problems for the people involved, due to the additional costs of the collection agency. These costs are also generally not low.
Filling up one debt with another sooner or later almost always goes wrong. When things go wrong, the problems are often so great that a debt restructuring process is the only option. A debt restructuring process is a very difficult process in which people have to live on an absolute minimum for three years. The advantage is that if everything goes well, after three years someone will be debt-free again, but it is fair to say that by no means all debt restructuring processes are successful.