A new trial project will be initiated in Amsterdam in February this year, and the city’s municipal credit bank will buy out debts from creditors belonging to young Dutch adults in the project.
This decision comes after increased borrowing among young adults in the country was reported, which makes it a lot harder for young people to buy their own housing or seek higher education.
Apparently, creditors will be offered around $830 to pass on their debt and they will be issued a loan from the bank to repay their debt. To add to that, more of their debt will be canceled if they complete a particular training or educational programs, and a “coach” will be offered to all participants to guide them through the process.
Amsterdam’s deputy mayor Marjolein Moorman said that debts cause a lot of stress, and in the case of young people, they often determine their future. Many young people found themselves in a situation where they could not get out without help, and that’s why the city is now going to help them so they can make a new start.
Even though it’s still early to tell how the program will go, many people are pretty intrigued by the idea.
Official figures that were shared by the Guardian report that a third of the people in Amsterdam aged between 18 and 34 have debts, and student debt in the country has increased from €12,400 in 2015 to €13,700 in 2019. To add to that, the number of students who hold student debt has gone up from 388,000 to more than 1.4 million in the last four years, so the decision by the City of Amsterdam comes as a very welcome one.