One in four Czech families have low means of subsistence and are facing difficult economic situations. In absolute numbers, this problem affects more than 230 thousand households. “This critical social condition is reflected in our services: one in four users of our family counselling centres takes care of one or more minors lacking sufficient means” of sustenance, said Lukas Curylo. The director of Caritas-Czech Republic told SIR that the most requested service is “counselling on long-term indebtedness by families and how to face difficult situations.” More than 50% of Czechs and Moravians survive thanks to loans. The average loan size is of 536.000 Czech crowns (approximately 20 thousand euro), with a monthly reimbursement of 248 Euros, while the critical limit of family monthly income is approximately 890 Euros.
The burden of instalments. According to Caritas-Czech Republic, people spend most of their money on foodstuffs and current expenditure. Most loans serve to cover the cost of a car, to improve living conditions, or to enjoy holidays abroad, which is easily accessible and is not cause of indebtedness for only 25% of all families. A research commissioned by the Czech Bishops’ Conference past April shows that,
One in ten families cannot afford repayments on a regular basis
while one in three have no idea of how to solve this critical situation; many of them claim that it’s not their responsibility to find a way out. Respondents believe that this problem should be handled by charities and employment agencies.
The trap of illegal activities. For Iva Kuchynkova, Caritas Coordinator of social issues, “in addition to offering support and counselling, Caritas actively takes part in legislative amendment and development processes in the area of social services. However, in our opinion current legal supervision is insufficient. Many people fall into the trap of illegal activities in the attempt of solving their difficult financial situation. We want our State to provide everyone with the opportunity of making a fresh start after having complied with specific conditions without being rejected by society as if they were criminals.” An effective tool to solve critical situations consists in
the possibility of accessing a gradual and controlled debt-reduction program
that sets the legislative framework regulating insolvency, so that even in case of the enforcement of assets confiscation procedures, the families involved may always be granted a certain amount of money for basic necessities – food, home, health, education… thereby preserving their dignity.
The law and its flaws. A new insolvency law entered into force in July this year, but its application has already brought to the fore a number of flaws that will need to be remedied in the future, such as access to the procedure, which is very complicated for ordinary people, not to mention a number of legislative measures yet to be adopted in the area of family allowances, affordable housing, or a more accurate definition of the family status within the Czech social system. Despite the government’s efforts in this regard, the cooperation between the Government and NGOs with years-long experience in this sector, and which address family and individual problems on a daily basis, should be strengthened.
Protecting the families. Caritas-Czech Republic is one of the most professional NGOs in the Country that has been tirelessly committed in the social sector, with a story of successful experiences in assisting marginalized groups of citizens in Bohemia and Moravia, testifying to the Church’s seriousness and credibility in her mission of helping people in need. “On many occasions the bishops have underlined that support to the family, understood as a natural living environment, is a fundamental issue in our society. Our duty is to help families and prevent their break-up caused by insoluble economic and financial problems as far as possible”, said Stanislav Pribyl, Secretary-General of the Czech Bishops’ Conference. Church and NGO representatives agree that
The power of reversing the trend of debt overload lies mainly in the families
and it strongly depends on the adoption of veritable “formation” in this sector. The bishops highlight the need for a strong sense of responsibility in the areas of health and employment … Moroever, “financial literacy” is a necessary option to avoid serious problems and decrease the overall number of assets seizure –almost 200 thousand each year – resulting from over-indebtedness.
