The Municipality of Arnhem is trying out an innovative poverty relief scheme: it’s offering to pay off the debts of sixty households from its poorest district, Immerloo — but not everyone trusts them enough to accept the money.
So far, the Municipality has cleared around €200,000 of debt, reports NU.nl.
“There is no catch”
Did this headline tickle your sceptical bone? Well, Immerloo residents had the same reaction.
Even though the authorities insist that “there is no catch,” most of the targeted households have turned down the offer for now.
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“People have a lot of distrust towards the government. We are not allowed to enter the first time we ring the doorbell,” a spokesperson for Arnhem’s alderman tells NU.nl.
However, that seems to be slowly changing. “With fifteen households, we are at the point where we can come by more often,” the spokesperson adds.
First few households are debt-free
For the families that did accept, life is about to change.
The Municipality has already mapped out the debts of the first ten households, which together amount to about €540,000, spread over 250 different creditors.
Eighty of these debts, corresponding to roughly €200,000, have now been paid off.
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The Municipality is moving fast, especially seeing the urgency and seriousness of the problems faced by these families — some of which have been postponing surgery or struggling with childcare due to their financial issues.
A clean slate
Apparently, the scheme has no hidden conditions — the Municipality just wants to give its poorest residents a chance to start fresh.
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The money is coming partly from a buy-back fund set up for this initiative, and partly from major Municipality creditors, including energy supplier Vattenfall and insurance company Menzis.
The scheme also includes two optional years of free guidance to help the participating residents stay debt-free in the future.
What do you think of this groundbreaking debt relief scheme? Share your opinion with us in the comments below.