Velanhoitotuki

Velanhoitotuki is a Finnish term referring to a form of financial support designed to help households manage their debt payments in a way that preserves basic living standards and reduces the risk of insolvency. It is not a nationwide, unconditional benefit, but a measure that may be available through local social services or in connection with Finland’s debt counselling framework (velkaneuvonta), and its availability can vary by municipality and over time.

The purpose of velanhoitotuki is to reduce the burden of regular debt service costs to a sustainable level as part of a broader debt management plan. The support is intended to enable continued housing, food, and other essential expenses while debt restructuring or negotiation with creditors takes place.

Eligibility and administration typically depend on local rules. Applicants are usually individuals or households with low income and a demonstrable debt burden that endangers their financial stability. A structured repayment plan and consent from creditors are often required, and the decision is made by municipal social services in collaboration with debt counselling services or, in some cases, by Kela (the Social Insurance Institution) as part of its welfare services.

Application procedures generally involve contacting the local social services or Kela to initiate an assessment. Applicants provide information about income, expenses, and a list of debts with creditor statements. A caseworker evaluates whether velanhoitotuki is appropriate, determines the amount, and outlines the expected duration and conditions of the support.

Rules and availability can change; individuals should consult their local social services or Kela for current criteria, processes, and potential impacts on other benefits.