Society Lower adult age in Japan leads to increased debt among young people

[thomas]

I guess we've all been there.

I'm just surprised that it's so easy for Japanese teenagers to acquire credit cards. It can still be a hassle, not just for foreigners if you don't work for a renowned company.


One of the anticipated consequences of Japan's decision to lower the age of adulthood to 18 in 2022 seems to have materialized: an increase in financial difficulties among young people. With personal bankruptcy cases occurring as early as 19, government agencies are intensifying their efforts to raise public awareness. Consumer affairs experts warn that the reported cases may only be a fraction of the problem.

Lowering the age of adulthood to 20 allowed 18 and 19-year-olds to enter into consumer loan contracts and apply for credit cards without parental consent. According to the National Consumer Affairs Center of Japan, consultations regarding multiple debts reached a 10-year high in fiscal 2023 for teenagers and those in their 20s. The increase among teenagers was particularly alarming, nearly doubling from 90 cases in fiscal 2021 to 175 cases by March of this year.

When a 20-year-old man living in a support facility in the Chugoku-Shikoku region for youth unable to live at home was asked why he had obtained a credit card, he told a facility staff member that he had simply wondered whether he could do so and was issued one over the internet. He got the card in the spring of 2022, right after turning 18. Despite not holding down a steady job, he went out socializing more often and also signed up for seven new smartphones that he intended to resell. After racking up debts of about 1.5 million yen, he sought help from the Tokyo-based Japan Legal Support Center and completed bankruptcy proceedings at the age of 19. "We will no doubt witness more instances of the personal bankruptcies of our residents," an official of the housing facility said. The official said the majority of residents at the facility have not developed good spending habits or attitudes to financial planning due to troubled family circumstances such as abuse and poverty as well as developmental issues. The man who filed for bankruptcy was diagnosed with attention deficit hyperactivity disorder as a child and abused by his mother, the official said.

FOCUS: Lowered adult age sees rise in young Japanese struggling with debt

One feared consequence of Japan's lowering of the age of adulthood to 18 in 2022 appears to have come true -- a rise in young people getting into difficulties with debt.

english.kyodonews.net

 

[Grandpa Frank]

Not sure if it's an age thing or how long you've had your card , seems crazy that I can go buy a car and pay with my credit card. Both mine allowed $30,000US which seemed like a good way to get into trouble. Now that I hardly ever use them , the companies dropped both to around just $20,000US.