For the model used to calculate the maximum amount of responsible credit in the Caribbean Netherlands, what has to be entered for pre-existing monthly debt service payments?

Current financial expenses have to include the following:

  • The interest and principal payments that the consumer has to make each month for current consumer credit.  
  • Premiums for accrued benefit products. By an “accrued benefit product”, the AFM means a life-insurance policy under which a consumer builds up capital to fully or partially repay a loan at the end of its term.  
  • Premiums for term-life and other types of life insurance, if they are compulsory for obtaining a mortgage loan or consumer credit. 

Premiums for car insurance, fire insurance, home-contents insurance, etc. do not have to be included as pre-existing monthly debt service payments. To avoid double counting, this also applies to the premium for a compulsory term-life or other type of life insurance, if the premium is factored into the effective rate of interest.

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