Published 08:48 IST, January 18th 2020
Amsterdam to buy out its youth's debt and enable them to focus on their future
Amsterdam has decided to waive the debts of young adults in the country so as to relieve them from the stress of finding jobs to pay for their education.
- World News
- 2 min read
Amsterdam has announced that it would waive the debts of young adults in the country so as to relieve them from the stress of finding jobs to pay for their education. The debt-transfer project is set to start in February and will begin on a trial basis where municipal credit banks will try and negotiate with creditors to buy out the youth's debts. Those on the scheme will then be issued with a loan to repay according to their means.
The creditors in the scheme would be given €750 as an incentive to pass the debt to the municipal banks. Each young-adult would also be given a "coach" with whom they will prepare a “guidance plan”. More debt will be canceled if the youngsters successfully engage in training or an educational program.
Research shows that debts and loans are on a rise among young Dutch adults and in general among the youth of Europe and UK. It has also been observed that borrowing and repaying of loans act as a massive setback for these youngsters who want to finish education and get a job. Mounting debts holds them back from doing so.
Speaking to a British daily, Amsterdam’s deputy mayor Marjolein Moorman said that the majority of these debt-ridden youth are in this situation because of 'bad luck or ignorance', thus, the government has come forward to help them so that they can make a new start.
One-third of Amsterdam youth lives in debt
More than a third (34%) of Amsterdammers aged between 18 and 34 have debts, according to the official figures. The average student debt in the Netherlands has increased from €12,400 in 2015 to €13,700 in 2019. The number of individuals with student debt has also increased, rising by 388,000 to reach 1.4 million.
Updated 08:48 IST, January 18th 2020