Short-time work, loss of jobs, elimination of mini-jobs – the corona pandemic has put many people financially in dire straits. As a result of the corona pandemic, twice as many people in Munich are now looking for advice by telephone from the city’s debtor and insolvency advice centers and associations as in 2019. At the request of the SPD / Volt city council group, supported by the Greens / Rosa List, there should now be three additional full-time positions for counseling to help people cope with the consequences of the pandemic.
“For many Munich households, even in normal times, financing the running costs of living and living is a challenge,” emphasizes social affairs officer Dorothee Schiwy. “After more than a year and a half in the pandemic, the savings have been used up and there is still little prospect in sight.” Loan obligations could often no longer be met, and social problems would be exacerbated by the corona crisis. In the case of debtor and insolvency advice centers, inquiries about so-called multi-problem situations increased.
While the debt counseling centers provided a total of 5,160 telephone consultations in 2019, the number rose to 9,298 in the first year of the pandemic. This year there were already around 5500 telephone consultations in the first half of the year. Schiwy therefore expects around 11,000 telephone consultations in 2021, more than doubling compared to 2019. “There has been a sharp increase in inquiries from solo self-employed people, small business owners, artists and freelance workers.” The month-long lockdown has forced many to give up their professional independence. Finding work is difficult, as permanent staff are only being sought hesitantly in many areas.
In order to meet the high demand for advice, the existing personnel capacities are no longer sufficient, the waiting times have increased to up to four months, reports the social officer. At the end of 2020, the city council had created three additional positions, which means that 51 positions are now available across the city for advisory specialists. The social committee is now to decide on a further three positions limited to three years on Thursday, the total costs for staff and rooms amount to around 300,000 euros annually and are already covered in the city budget under the item combating the consequences of the pandemic.
With a further 30,000 euros, the continuation of the project “Be careful what you sign” of the Evangelical Migration Center, which started in 2019, is to be secured, which is supposed to protect refugees and migrants from falling victim to dubious contract offers by imparting knowledge. Previously trained native-speaking compatriots are used to impart basic knowledge of contract law and consumer rights to refugees in workshops. The start-up financing was taken over by the Bavarian Ministry of Consumer Protection in 2019. In the past year, almost all workshops had to be canceled due to Corona.