Data from Japan
Economy Society Family
Changes to Japanese money lending business law more than a decade ago led to a reduction in personal bankruptcies, but there has been little change in recent years.
The number of people in Japan who are unable to repay several loans obtained from consumer finance companies and other businesses has declined since the adoption of an amendment to the Money Lending Law in December 2006 and its full application in June 2010, remaining around 1.2 million since 2017. By the end of March 2022, 1.16 million people had multiple outstanding loans, with an average combined debt of ¥544,000.
The number of personal bankruptcies was 68,420 in 2021, down 3,438 year-on-year. This number has remained stable in the years following the revision of the Money Lending Business Act, hovering around 60,000 to 70,000. The ratio of personal bankruptcies to total population is 0.0541% nationally. The highest rate by prefecture is 0.0760% in Hokkaido, followed by 0.0742% in Osaka and 0.0678% in Miyazaki, while the lowest rate is 0.0309% in Toyama.
The number of suicides believed to be caused by multiple debts was 645 in 2021, representing about 3% of total suicides for that year.
(Translated from Japanese. Banner photo © Pixta.)