Financial and debt problems
Anyone’s financial situation may deteriorate due to, for example, divorce, illness, disability or unemployment. However, help and advice is available from many services, such as Kela, the Guarantee Foundation and wellbeing services counties.
If the your financial situation is keeping you awake, it’s important to know that no one is alone with that. Whatever your road has been, the anxiety caused by debt and lack of money can be gnawing, and all of us would like to live their life without worrying about money.
A burden carried alone always seem worse. Collect support forces around you. And remember, feeling guilty or ashamed is can be put aside, you’re not the only one.
When it feels like there isn’t enough money and it’s difficult to manage the payment of invoices, help and advice can be found in many services.
Where to find help with financial and debt problems?
Kela benefits
Options may include sickness benefits, housing benefits, disability benefits, unemployment benefits (if not eligible for earnings-related unemployment allowance) or basic social assistance.
Kela’s basic social assistance is a last-resort benefit that can be received by a person or family whose income and funds are not sufficient for the necessary daily expenses. Essential expenses include housing costs, food and health care. The Kela website contains a basic social assistance calculator, which can be used to create an estimate of the right to basic social assistance based on income, funds and expenses that are taken into account.
For more information on benefits, please contact Kela’s service numbers. You can also use Kela’s service point, submit a message to an official via MyKela in the e-service channel or book a separate telephone appointment via Kela’s website.
Wellbeing services county’s social assistance and social lending
The wellbeing services county decides on the granting of supplementary and preventive social assistance. To apply, you need Kela’s decision on basic social assistance.
Supplementary social assistance may be granted on a discretionary basis for expenses deemed necessary to promote income security or independent coping due to the special needs or circumstances of the person or family. These may include household purchases, children’s hobby expenses or introductory psychotherapy visits. For example, receiving long-term social assistance, a long-term or severe illness and special needs related to children’s hobbies can be considered a special need or condition.
Wellbeing services counties may also grant preventive social assistance, the basis of which the wellbeing services counties themselves decide. The purpose of preventive social assistance is to promote the independence of a person or family and to prevent social exclusion. Preventive social assistance can be granted, for example, to alleviate problems caused by excessive indebtedness or to secure housing, for example, under threat of eviction.
Assistance may also be granted in the event of a sudden deterioration of the financial situation and the resulting difficulties. For more information on applying for supplementary and preventive social assistance and the criteria, contact the social services of your wellbeing services county.
Each wellbeing services county must organise social lending in its area. In other words, it’s a statutory service. The wellbeing services county decides on the scope of the provision of social lending, the amount of credit capital and the sizes of loans. For example, social credit can be granted for breaking a cycle of debt, household purchases, securing housing or resolving crisis situations. A person with a low income who doesn’t have access to reasonable credit elsewhere and who is, however, expected to have solvency in terms of repayment of the credit may receive the loan. For more information, contact the social services of your wellbeing services county.
Guarantee Foundation services
Toll-free Debt Line, tel. +358 800 98 009 is available Mon–Thu 10:00–14:00 for more information on the different services of the Guarantee Foundation. In addition, you can discuss your financial and debt matters and different solutions by telephone with an employee of the Guarantee Foundation. The Ask about money chat is open Mon–Thu 12:00–15:00 and on Wednesdays also 17:00–19:00.
The Guarantee Foundation also grants guarantees for consolidation loans taken out from a bank. A consolidation loan is a bank loan that can be used to combine several different debts into a single loan. The guarantee can be applied for from the Guarantee Foundation if a bank loan is prevented by, for example, a lack of collateral or a payment default entry. The maximum amount of a guarantee for a sole applicant is EUR 34,000. The guarantee requires that the applicant has regular income and expenses as well as the ability to pay the arrangement loan.
The Guarantee Foundation also grants miniloans for one-off expenses, such as household appliances, furniture or rent deposit. The miniloan can be EUR 200–2000 and the loan period is a maximum of two years. The monthly instalment depends on the applicant’s ability to pay. A miniloan cannot be granted for the payment of debts, except in exceptional cases.
Financial counselling clinics
At the financial counselling clinic, you can discuss financial matters with an expert without an appointment at a low threshold. You can reflect on your situation, get advice and explore different options for your situation. You can also call financial counselling clinics in some municipalities by telephone. On the oikeus.fi website, you can find information on the locations where financial counselling clinics are found.
Financial and debt counselling provided by the Legal Aid Office
Legal aid offices provide free financial and debt counselling. Financial and debt counselling can be contacted by phone, and the contact details can be found on the website of the legal aid offices. Financial and debt advisors help with, for example, mapping the overall financial situation, financial planning and drafting friendly solution proposals for creditors. Advice is available by phone, remote service and appointment.
In addition, the financial and debt advisory services can provide additional information and assistance in applying for debt adjustment from the district court. Debt adjustment is a last-resort debt restructuring measure that can be granted if the conditions are met. In practice, this means that the person pays off debt for a certain period of time, as a rule, three to five years, after which the rest of the debt is forgiven.
Receiving a debt adjustment requires that the applicant’s ability to pay has deteriorated due to illness, disability, unemployment or some other reason. The deterioration of ability to pay must not be solely self-inflicted and the amount of debts must be too high in relation to the applicant’s ability to pay. Another requirement for debt adjustment is that the applicant has checked whether debt management is possible by other means than debt adjustment and that the applicant has tried to pay their debts themself.
Church social work
The social work of the Evangelical Lutheran Church of Finland can provide discussion assistance in investigating your financial and debt situation. In urgent situations, you may also receive financial assistance from church social work. For more information, contact the social services of the parish in your area.