Saving lives by offering debtors a way out

Municipalities have been desperately trying to come up with measures to reduce the number of suicides, which has exceeded 30,000 annually in Japan for the past 11 years.

Because financial problems are the root cause of many suicides, local governments have started setting up programs to clear multiple debt problems.

According to the National Police Agency, in the first six months of this year, 17,076 people across Japan committed suicide. At that rate, this year's total could climb as high as in 2003, when a record 34,427 individuals took their lives.

The city of Kurihara in Miyagi Prefecture, with a population of 78,000, has actually managed to reverse the trend.

In January 2008, the city began offering loans to people struggling under multiple debts, aiming to prevent them from committing suicide.

Inquiries poured in as soon as the loan program got under way.

Authorities took action after learning that the city's suicide rate, the number of people killing themselves per 100,000 population, was double the national average.

In 2005, 40 Kurihara residents died by their own hand, a suicide rate of 48.6--about twice the national average of 24.2.

Mayor Isamu Sato, 67, declared "a state of emergency" at the city assembly in June 2007 and established a committee to find a solution.

Questionnaires sent to citizens found that many faced dire financial problems. Soon after, the city government opened a debt hotline.

In January 2008, Kurihara, together with local financial institutions, began its Nozomi (hope) Loan program for citizens with multiple debts.

The city government entrusted 100 million yen with the financial institutions, which are authorized to lend up to 10 million yen per person at an annual interest rate of 7.9 percent.

The program has prompted even more people to turn to the city government for help with debt problems.

As of Sept. 1, loans totaling 33.87 million yen had been extended to 14 people. The number of borrowers is low because the city was able to help 90 percent of inquirers solve their problems without resorting to loans.

One self-employed man in his 50s, for example, visited a local credit cooperative after learning about the city's low-interest loan program in late May. He had been stymied by a cash-flow problem, having borrowed money for his business. He owed six consumer financing firms 3.3 million yen.

The credit cooperative referred him to the city's multiple-debt consultation desk, which arranged an appointment with a lawyer.

The man discovered that he had overpaid 5 million yen in interest.

"I was truly saved," the self-employed man said.

By 2007, Kurihara's suicide rate had shrunk to 27.5, with 22 citizens killing themselves that year.

The city's effort to help people deal with multiple debts through the aid of lawyers, judicial scriveners, nonprofit organizations and financial institutions has proved so effective that it is called the "Kurihara model."

Another municipality tackling suicide prevention is Kyotango, the northernmost city in Kyoto Prefecture.

With a population of 62,000, the city has a high "aging rate"--the ratio of those 65 or older in its population. Kyotango's is 1.5 times higher than the national average.

The aging rate is connected to the suicide rate. Kyotango's suicide rate has been 1.4 times higher than the national average for the past 20 years.

For this reason, the city made suicide prevention a priority.

"Protecting the lives of citizens is one of the municipal government's duties. It's important to send a message that the city will not leave anybody behind," said Mayor Yasushi Nakayama, 49.

The city government established a committee to cope with the problem in 2006.

In fiscal 2007, it created an office to help people with multiple debts, with a staff of two dedicated to the mission.

The office receives one new inquiry a day on average. It also handles inquiries from outside the city, out of a belief that if such efforts spread, Kyotango residents shy of turning to their own local government for assistance may be able to find aid elsewhere.

In June, a woman in her 30s who lives in Kyotango called and said she owed consumer finance firms about 2 million yen, which she was unable to repay.

She came to the city office and met with an official for two hours. The official learned that she had borrowed money because her income was unstable. When she had to quit her job to take care of a family member, she became unable to repay the debt.

The official sorted out the documents the woman had brought and made an appointment with a lawyer. Several days later, he accompanied the woman to the lawyer's office.

In addition, the official took her to a public housing organization to have her monthly public housing rent reduced.

She also owed residents tax and other public expenses. The official consulted with the related city government sections and arranged for her to pay in installments over a period of 18 months or so.

The official and the woman revisited the lawyer's office about a month later.

She had not overpaid any interest on her loans. Because of her inability to repay her debts, she was advised to declare personal bankruptcy.

Several days later, the official accompanied her again to the lawyer's office where they heard instructions on how to apply for personal bankruptcy.

According to city officials, personally following through the whole process of debt consolidation with the debtor is important, rather than just sending the person from one office to another.

The Kyotango city government prides itself on providing comprehensive care, aiming to help people not only resolve their multiple debt problems but also rebuild their lives.

Moreover, no one who has consulted with Kyotango's multiple-debt assistance office has committed suicide, according to officials.

Tadashi Takeshima, who heads the Center for Suicide Prevention at the National Center of Neurology and Psychiatry, said, "I feel that moves to prevent suicide are on the rise among municipalities."

Takeshima rates efforts to create opportunities to "connect" with people, such as those in the cities of Kurihara and Kyotango, very highly.

"Measures to help parents who are exhausted by child rearing and families in economic distress all contribute to prevent suicide, too," he said.

"It's important to offer attentive care to people who have difficulties with life," Takeshima added.(IHT/Asahi: October 24,2009)