In a vow to help young Amsterdammers, the city of Amsterdam is taking over the debt of young adults who are struggling to get into work or education. This action was taken to directly confront the growth in borrowing among young dutch adults – more than a third of Amsterdammers aged between 18 and 34 have debts. The average student debt in the Netherlands has also climbed from €12,400 in 2015 to €13,700 in 2019.
Under Amsterdam’s ‘debt-transfer’ project, a municipal bank will negotiate and buy the debts from creditors. Once on the scheme, the loans can be repaid to the municipal bank according to the possible means of the young adult. People who participate in the scheme will also have the opportunity to further decrease their debt if they successfully participate in training or educational programs. Furthermore, each person is given a coach to prepare a “guidance plan” to restructure their debt payment.
The new idea will be deployed this February with the city government hoping to provide a new start and reduce stress for young people in debt.