How does the debt settlement arrangement work?
When you agree a debt settlement arrangement with the municipality:
- a contact at the municipality will mediate between you and your creditors. We do not take over your financial situation;
- you make every effort to set as much money aside as you can for your creditors during the course of the debt settlement arrangement (36 months). You may not run up any more debts and/or enter into any other financial obligations;
- you give us all the details of your income, expenditure and debts. You must inform us immediately of any changes in your personal or financial circumstances;
- you agree to transfer your income to the municipality. We deduct the amount reserved for your creditors from your income. It may be that the municipality also continues payment of your fixed expenditure;
- we check and register the debt settlement arrangement with the Dutch credit rating agency: www.bkr.nl
How does budget management work?
First we draw up a budgeting plan with you. It will include fixed income and expenditure. We will also make arrangements for unforeseen expenditure.
Then we open a bank account for you. Your monthly income, including any supplements from the tax authority will be paid into this account. Your budget manager will pay your fixed expenditure from this account. We will send you a statement of this account every month. That way you have an overview of your payments and you can get your financial situation sorted out.
Different forms of budget management
We offer 3 forms of budget management:
- Budget Management Basic: all fixed expenditure is paid;
- Budget Management Plus: payment of all fixed expenditure plus the option of 1 payment arrangement and 2 reservations;
- Budget Management Total: payment of all fixed expenditure plus the option of multiple payment arrangements and reservations.
What does budget management cost?
If your income level is no higher than that of social welfare benefits, the service is free of charge.
If your income is higher, the costs depend on both your financial and personal circumstances and on which form of budget management you choose (for the various forms of budget management, see 'How does budget management work?).
|Basic Budget Management per month (costs to the client) Only fixed expenditure||23 Euros|
|Budget Management Plus per month Fixed expenditure and extra function||41 Euros|
|Total Budget Management per month Fixed expenditure and multiple payments||53 Euros|