INTERNATIONAL STORY DEBT COUNSELING EXPERT: “TALK ABOUT MONEY” BY SIMONE DECKNER Catrin Sternberg is head of debt counseling at Diakonisches Werk Hamburg. She would like to see more openness when it comes to money worries. HINZ & KUNZT: How difficult is it for people to go to debt counseling? CATRIN STERNBERG: The subject is afflicted with shame. People who call here are initially reluctant. We then say, “It’s good that you’re coming forward!” After the first few conversations, the shame usually subsides and gives way to a great sense of relief. After all, this is often preceded by a long history of suffering. Who comes to you? Many of our clients are poverty-stricken. Since the pandemic, however, we have also received an increasing number of inquiries from people who are on short-time work or self-employed. What are the main reasons for debt? Wh nemployment, illness, and separation. Peter Zwegat used to help people get out of debt on TV. The impression: Many people can’t handle money! Pe im There are people who live beyond their means, but that’s about 8%. According to a new study, for 45%, the main reason for ver-indebtedness is an unforeseen event, such as an illness or he loss of a job. 8% What are the first steps in counseling? We look at: Exactly how much debt do you have? All the documents are put on the table. Then we examine together what the prospects are - on a completely individual basis. There is no one solution for everyone. In the past there was the budget book, today you can track your expenses with apps - does that make sense? Both are very time-consuming. But you often get an “aha” moment when you see how much you have left: I hardly have any wiggle room at the end of the month. People often make installment agreements that they can’t afford. According to the motto: It will work out somehow. It is important to always pay rent, electricity, and water. If the checking account is seized, it should be converted into a garnishment protection account, so that an allowance of 1260 euros ($1362.30 U.S.) is secured against seizure. How can I avoid debts? It is widely said that “one shouldn’t talk about money”. I think one should definitely talk about money. So that you know how the high income and expenses are. Textbook advice is to have three net monthly salaries in reserve. But my clients often say, “I don’t know how I’m going to manage from the middle of the month!” So, this is more of an ideal. Anyone who is insolvent can file for personal insolvency. More and more people are doing this in Hamburg. Is that good or bad? Private or consumer insolvency is a last resort, but also a good one. Since the reform of insolvency law in 2020, the procedure only takes three years instead of six. The clients have their backs free after successful completion. ■ Translated from German by Lisa Luginbuhl Courtesy of Hinz&Kunzt / International Network of Street Papers CATRIN STERNBERG KNOWS THAT THOSE WHO COME TO HER OFTEN HAVE A LONG A LONG HISTORY OF SUFFERING BEHIND THEM. CREDIT: ANDREAS HORNOFF HOW TO HELP The money we take in from vendors helps us cover a portion of our printing costs, but we depend largely on donations from individuals, businesses, and foundations to help us pay our rent and keep the lights on. 1 4 GET THE WORD OUT We rely on grassroots marketing to get the word out about what we do. Talk to people about our organization and share us with your network. Support us on DONATE Donations to the Denver VOICE are tax-deductible. Go to denvervoice.org to give a one-time or recurring donation. You can also mail a check to: Denver VOICE | P.O. Box 193 | Denver, CO 80201 3 VOLUNTEER We need volunteers to help with everything from newspaper distribution to event planning and management. Contact program@denvervoice.org for volunteering information. 5 SUBSCRIBE If you are unable to regularly purchase a newspaper from our vendors, please consider a subscription. We ask subscribers to support our program with a 12-month pledge to give $10 a month, or a one-time donation of $120. Subscriptions help us cover our costs AND provide an amazing opportunity to those who need it most. Go to denvervoice.org/subscriptions for more information. @denverVOICE 2 ADVERTISE Our readership is loyal, well-educated, and socially concerned. Readers view purchasing the paper as a way to immediately help a person who is poor or homeless while supporting long-term solutions to end poverty. If you are interested in placing an ad or sponsoring a section of the paper, please contact us about rates at ads@denvervoice.org. May 2022 DENVER VOICE 3
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