Municipal debt help for self-employed
Summary
Introduction: An increasing amount of self-employed people in the Netherlands faces
financial problems. However, many people do not access debt help offer by municipalities.
This has negative implications for the financial well-being of self-employed people. Objective:
Understand the factors that influence the low participation rate of self-employed people in
municipal debt help. Theory: The influence of financial problems, trust in municipal financial
services, and self-stigma on financial help are examined to understand self-employed people’s
financial help-seeking behaviour. Method: Data from the single-wave study ‘On municipal
debt services for self-employed’ from the LISS panel is used. Logistic regressions are used to
understand the impact of financial problems, trust and self-stigma on participation in municipal
debt help. Results: Participation in municipal debt help was not affected by financial problems
and trust. Self-stigma decreased the participation in municipal debt help. This effects runs
independently of one’s financial situation. Conclusion and implications: Self-stigma on
financial help negatively impact the willingness of self-employed people to participate in
municipal debt help in case of financial difficulties. Knowledge regarding the available
financial services facilitates the participation in debt help programs. Self-stigma can be reduced
by creating an environment where people feel comfortable seeking financial help. This can be
achieved by sharing stories of self-employed people who have positive experiences with
municipal debt help on the website of municipalities. Financial knowledge can be increased by
providing accurate and clear information about the available financial services on the website
of the municipalities.