Bankruptcies, Suicides Rise as Japanese Struggle With Mounting Debt

2 comments

1. “Consumer loans are rising at the highest rate in 16 years. Household borrowing exceeded incomes for the first time last year. And government officials are worried that many people accustomed to rock-bottom rates will struggle with their mounting loans.

   While Japan is by no means alone in confronting a debt problem, salaries are the lowest of Group-of-Seven countries, and the central bank is raising borrowing costs while its peers cut them.

   The problem is all the more remarkable given that the country is better known for savers stashing cash under the mattress rather than piling into debt.

   Yet average household debt rose to ¥6.55 million ($42,000) in 2023, higher than incomes, government data showed.

   Some people are probably getting loans to cover the part of their living expenses that their wages can’t cover,”

   The country lowered the age of adulthood to 18 from 20 in 2022, increasing the pool of potential borrowers.

   The average amount of debt at households led by individuals up to 29 years old almost tripled to ¥9.92 million in 2023 from a decade earlier.”

2. Cost of living is increased through inflation, yet earnings do not keep up. It’s the same story across the whole world

Comments are closed.