The figures from the BKR credit barometer, which measures trends and developments in the payment behavior of the Dutch borrower, show that the fall in payment arrears with consumers that started last year has been continued. The last six months have even seen a decrease of 5%.
Payment arrears reduced
After years of increases in the numbers of payment arrears, the BKR was able to report a decrease last January. Now a further decrease in the number of Dutch people with payment arrears appears. That is positive news in reducing irresponsible loans with payment problems as a result. Thanks to the improving economy and labor market, consumers have more money to spend. As a result, payment arrears could be redeemed and the number of people unable to meet their payment obligations has decreased. As a result, a fall in payment arrears.
The expectation is that people will borrow more now that the economic crisis is over. Because people had a harder time financially, they were less likely to take out a loan. Partly because of this, the number of people with payment arrears stagnated.
BKR wants to stop irresponsible loans
A BKR registration has a negative connotation for many consumers, while it is precisely intended to protect them from taking irresponsibly high loans. Lenders check your details with the BKR when you apply for a loan. If there is a negative registration, the chance of a loan is very small. A negative BKR registration is five years after your name and has major consequences for your mortgage application; with a negative BKR registration you will not receive a mortgage. Certainly now that credits from € 250 are also registered, you must do everything to prevent payment arrears and thus a negative registration.
Thanks to the information on responsible lending that the BKR gives to consumers, there is an awareness that leads to consumers not taking out loans or credits that they cannot afford financially. The BKR recommends that lenders provide responsible loans to consumers that suit their financial capacity. Thanks to the registrations, this is becoming increasingly successful.