Residents of Rozendaal and Rheden with a low income may squeeze their hands. At least, if they want to borrow cheaply from the credit bank. Because as of January 1, the Kredietbank Arnhem will make it happen. The Dutch municipalities of Rozendaal and Rheden therefore entered into discussions with the Bank and both parties have signed a contract. Loans from the Bank are much cheaper than the expensive loans that could previously be applied for at Kredietbank Arnhem .
What do credit banks do?
Why do people use a credit bank to take out a loan? Credit banks have been created to help people with debt move forward. First of all, agreements are made with creditors to prevent additional debts. This prevents debt collection measures being taken.
In some cases it is possible to lose debts. In addition, a loan can be taken out with a credit bank. All current debts are included in this. Then 1 debt remains. This is called a remediation credit. Credit banks also help people with debts to stabilize the financial situation. A situation is only stable if the income is higher than the expenditure.
Credit bank in municipalities not required
Not all Dutch municipalities have a credit bank. According to the law, that is not mandatory. No credit bank was established in Rozendaal and Rheden. However, the residents could go to the Kredietbank Arnhem. Even though these two municipalities had not signed a contract with the municipality of Arnhem. Incidentally, this credit bank was bad news because of the high interest rates it counts on loans. The TV program Kassa paid attention to this.
Borrowing cheap money at Bank
With the contract that the municipalities of Rozendaal and Rheden have concluded with the Bank, the high interest rates on loans for people with debts end. They lend at a low interest rate of 2.3% from 1 January. The municipality of Arnhem applied an interest rate from 11%. Unfortunately, not all residents of Rheden and Rozendaal who have a low income (and can not take out a regular loan) can benefit from this favorable interest. This low interest applies only to new applications.