Debts become visible
In the Netherlands, more than half a million households – many of them including children – live in extreme poverty, and more than one million Dutch people struggle with problematic debts, according to the Nibud (National Institute for Family Finance Information). The scale of this problem is enormous, but poverty and debt are often concealed because of shame and the stigma around it. These financial problems become painfully clear in the summer holidays. The question ‘Where did you go on holiday?’ is incredibly common at the schoolyard, the workplace, and the supermarket. Besides, the social pressure to spend money is greater in the summer. What do you tell your children when all the neighbourhood children go get an ice lolly? Social media platforms also contribute to the visibility: wealth is displayed in the form of fun holiday pictures, whereas poverty becomes visible when one does not post such pictures.
Maelstrom
How do people end up in debt? Why do people stay in debt? Joost Beuving, university lecturer and anthropologists, explains on behalf of REGAIN that there are a lot of different factors at play. In fact, some factors even seem to strengthen each other. PhD student Henry van der Burgt examined this phenomenon, under the supervision of co-supervisors Maurice Gesthuizen and Joost Beuving, and described the process as a maelstrom. In this maelstrom, people with debts get the feeling that they are losing their grip on things, and thus also the control over their situation. ‘There is a strong correlation between financial stress and mental health. This combination has an impact on the decisions that people make, as it becomes harder to make choices in the long term. Even more so now that the cost of living is increasing.’ When someone is dealing with financial issues, everything can happen very quickly. It is almost as though you are caught in a maelstrom. ‘The moment you don’t pay, you will receive collection letters and you will have to deal with creditors. On average, people who are in debt have 17 creditors. These creditors send emails, call you, and even visit you at your door. You can imagine that this has an enormous impact on someone’s daily life and mental health.’
Debt or dues?
This maelstrom effect seems to be the reason that debts can penetrate to the core of someone’s living. Furthermore, people often don’t look for help because they are ashamed or people don’t (have the possibility to) discuss it with those who are close to them. Beuving: ‘The stigma surrounding debts does not just partially lead to their existence, but also to their worsening and their preservation. For instance, having debts affects one’s social networks. People avoid social situations so they don’t have to talk about their debts. They don’t solely avoid them to avoid costs, such as the costs for a present or a round at the bar, but also to avoid speaking about the topic, as it is too painful for them. However, a connection to a social network is important, especially the more debts one has. Sometimes people are so ashamed that they are unable to contact organisations that provide debt counselling.’
The big stigma that surrounds debts makes conversations about them rather difficult. Volunteers run an initiative called the Schuldenforum (Debt Forum), where people who are in debt can share their anxieties anonymously and they can share practical tips. The forum does not only provide insight into daily concerns, but people also feel supported by the fact that they are not alone in this. Regardless, the stories remain poignant: ‘Not being able to go on holiday weights heavily on us because it affects our kids as well. It will take some time still before we can settle our debts. We lose precious moments that we will never be able to get back.’
REGAIN
The shame that surrounds debt pushes the researchers at REGAIN to contact individuals in the target group in less conventional ways. They follow everything that happens on the Schuldenforum and researchers establish lasting contacts with people who are in debt. ‘Not everyone dares to tell us everything in interviews,’ Beuving explains, ‘which is why anthropological fieldwork, where the development of mutual trust and understanding is key, can often help to provide insights into the debt problem.’
If we really want to tackle the debt problem, we should not only look at others, but also at ourselves and how we deal with this subject in our own circles. Debts are and will continue to be a societal issue that requires a societal solution.