1 / 8

Seminar on “ Household over-indebtedness in the EU in the context of the crisis, the way forward”

Household over-indebtedness in the EU in the context of the crisis - the state of play - debt advisory services. Seminar on “ Household over-indebtedness in the EU in the context of the crisis, the way forward” 6 December 2011, Brussels European Parliament Hans Dubois Eurofound

fareeda-hormizd
Download Presentation

Seminar on “ Household over-indebtedness in the EU in the context of the crisis, the way forward”

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Household over-indebtedness in the EU in the context of the crisis- the state of play -debt advisory services Seminar on “Household over-indebtedness in the EU in the context of the crisis, the way forward” 6 December 2011, Brussels European Parliament Hans Dubois Eurofound Living Conditions & Quality of Life Unit

  2. Feeling in control → well-being Source: Eurobarometer 74.1

  3. Arrears in the EU (%) Source: Eurostat website, SILC data

  4. Causes, consequences & solutions • Groups at risk & causes, see Eurofound (2010)*, but large groups: • Unexpected unemployed in combination with long-term financial commitments (e.g. high mortgage); • poor & excluded: expensive loans (& informal loans ). • Social and economic cost beyond the individual • Health, unemployment, social housing, lower tax revenue (Hollerweger and Leuthner 2006; van Geuns et al. 2011). • Solution: holistic approach • Ideal to prevent (school curriculum, consumer credit directive), but unrealistic to rely fully on preventive measures; • rehabilitation important, but often does not solve the cause; • an immediate, integrated alleviative response: debt advice * Working paper (2010) can be downloaded on: http://www.eurofound.europa.eu/areas/socialprotection/householdebts.htm

  5. 1) Provide timely access Quality debt advice • Stimulate timely signaling • Early-warning systems, e.g. referral by other social service providers (e.g. “VroegEropaf” [Approaching Early], Amsterdam) • Social partners • Also: outreach posts, multiple language & media channels, anonymous first-contact options • Translate into actual access. Problem: waiting lists, exclusion criteria & non-existence of services. • Understandable: limited funds & help those most in need with highest chance of success • Effective referral systems, ‘minimum service systems’, inter-municipal cooperation Research report (2011/2) can be downloaded by early 2011 from: http://www.eurofound.europa.eu/ If before: ask for an advance draft copy, Hans.Dubois@eurofound.europa.eu

  6. A customised, consistent process, relying on trust between the advisor & client... • Necessary to understand the full context • Credible and well-communicated confidentiality assurance • ... and cooperation between the advisor & other stakeholders (creditors, welfare offices, health services) • Long-term: mutual benefit • Provide support while leaving the household in control and having it actively contribute to the solution • Key tool: building a reliable payment record, also to guarantee access to cheaper future credit & as early-warning system • Sometimes minimal control necessary: e.g. anonymous food vouchers, utility payments directly to provider

  7. 4) Sound institutions • Quality assurance: providing organisations & advisors • Increase integration legal, health, welfare and financial help • Housing policies • react swiftly and consistently to emergency situations, for example smoothening the transfer of households to smaller dwelling • Some service provision overlap is not always bad • e.g. state-backed organisations have more legal discretion, and non-state providers can appeal to excluded groups • Consumer bankruptcy and legal debt settlement • not be too short (inviting for abuse), not too long and inaccessible incentives to maximise earnings

  8. Thank you! Hans.Dubois@eurofound.europa.eu Dublin

More Related