Dutch consumers and businesses owe a record 6.3 billion euros to debt-collection agencies.

Debts remain outstanding for increasingly long periods of time, and the last quarter of 2011 saw a substantial reduction in the amount the agencies were actually able to collect.

Chair Jet Creemers of the Dutch debt collectors association (NVI) said, “I was shocked when I saw the latest figures. We have apparently reached the point where people have exhausted their savings and now have great difficulty making their payments.”

The number of outstanding consumer debt files increased by seven percent whereas the number of new files dropped by six percent, which means files remain open longer and longer. The amount the agencies were able to collect decreased by 26 percent. According to Ms Creemers “This leads us to conclude that consumers find it increasingly difficult to meet their financial obligations.”

The decreasing number of new files points to two things: “Consumers on the one hand have become more careful in taking on new debt while on the other hand businesses have become more critical in accepting clients who buy on credit."

Businesses have also become more cautious in their dealing with other businesses and are engaging the services of debt collection agencies for increasingly small amounts.

(gsh/rk)

© Radio Netherlands Worldwide