Reference News Network, December 8 report. According to Kyodo News, December 6 report, the media's journalist learned on December 6 that by the end of this year, the number of people with multiple debts who borrowed from loan institutions three or more times nationwide had surged to 1.47 million. The Financial Services Agency will launch an investigation in December to analyze the reasons behind this situation. Rising prices may be one of the key influencing factors, causing concerns that the situation may continue to deteriorate.
In March 2021, the number of people with three or more unsecured loans was 1.14 million, a ten-year low. Now, this number has increased by nearly 30%. The number of people who committed suicide due to multiple debts also began to rise around 2021 and reached 853 in 2024.
To prevent multiple debts, Japan implemented a limit on the total amount of unsecured loans, restricting the borrowing amount to within one-third of the annual income. However, some views point out that since borrowers almost always applied for loans from multiple lending institutions at the same time, leading to lending before institutions could obtain the latest information.
The Financial Services Agency is considering conducting a new investigation into the factors that lead to multiple debts. Previously, the agency only conducted online surveys of borrowers but did not delve into the root causes. This detailed analysis of the situation seems to aim at promoting public-private cooperation measures, including system improvements.
In previous investigations, the Financial Services Agency found that the most common reason for borrowing was to pay living expenses, including utility bills and online shopping. In the future, the agency will analyze the relationship between borrowing and economic environmental changes such as rising prices, and plan to share information with other government departments and agencies.
It has been confirmed that some people used loans for fraudulent investment projects. The Financial Services Agency is considering revising its regulatory guidelines for lending institutions to more effectively identify high-risk borrowing.
From the late 1990s to the early 21st century, the problem of multiple debts became increasingly severe. By March 2007, the number of people with multiple debts had exceeded 4.43 million. Afterward, the Financial Services Agency strengthened regulation effectively, eliminating the gray areas where interest rate limits varied under different laws, and the number of debtors gradually declined starting from 2011. (Translated by Liu Lin)
Original: toutiao.com/article/7581350163059409458/
Statement: This article represents the personal views of the author.