Divorce Loan Helps or Hinders

Japan has a new loan called "Re"…not like in the song Do Re Mi.

Re is for:

1. re-starting their lives, f

2. divorcees to cover the costs of compensation and legal payments caused by a divorce,

3. offering a lower interest rate than a credit card.

Japan's divorce seekers are growing and the banks are happy to help out…not to get the divorce, but to recover from it.

In 2006 there were two divorce cases for every 1,000 people, up from 1.7 just 10 years ago.

In the United States, there are 3.6 divorce cases per 1,000, the United Kingdom is 2.8 and Russia….5.5 per 1,000.

If a Japanese in unfaithful in their marriage and causes the marriage to fail, average compensation is about 4 million yen ($30K).

To pay off the divorce debt, divorcees used consumer finance loans or credit card loans with interest rates in the 15-20% realm.

The new "Re" loand has a floating interest rate of 5.8%.

So, does this make it easier to get a divorce or harder?