Angry and deep in debt, teachers demand Thai govt step in

[webfact]

Angry and deep in debt, teachers demand govt step in

By ANEK KRAJAEM 
THE NATION

 

SOME 100 teachers on Saturday launched a campaign calling for the government and the Government Savings Bank (GSB) to allow a six-month moratorium in debt repayment to the Funeral Service Welfare for Teachers and Education Personnel fund.

 

The group, who said they were suffering from overwhelming debts from the fund, also urged 450,000 borrowers nationwide to stop repaying their debts to GSB branches from August 1 onward to further pressure the government. 

 

After that six-month grace period, starting on October 1, the group also demanded that the annual interest charged on the fund’s debtors be lowered to 1 per cent, as was applied to the government’s loan to farmers. Teachers currently pay between 5 per cent and 7 per cent on loans.

 

Tuang Anthachai, chairman of the National Legislative Assembly (NLA) committee on education and sports, came to collect the group’s demand at a conference hall in Rajabhat Maha Sarakham University on Saturday. They urged the NLA and the government to set up a special committee to find solutions for the overwhelming debt. 

 

Teacher Auychai Watha said for the past seven years he had paid a monthly instalment of over Bt7,000 to repay the Bt1.2 million he had borrowed. Though the capital amount owed had been reduced by Bt100,000, it left him still owing Bt1.1 million.

 

Auychai said that others who had also borrowed from the fund were made to buy 10-year insurance policies, paid for through a single payment of between Bt80,000 and Bt200,000. He said neither the fund nor the GSB offered an option that would allow the debts to be paid down faster.

 

The group’s video, which went viral this week, drew much criticism on social media. Many said any “debt repayment avoidance” approach would break the law or loan contracts. It was inappropriate for such actions to be committed by those whose status as teachers held them up as examples for the nation’s youth, they argued.

 

Source: http://www.nationmultimedia.com/detail/national/30350195

 

-- © Copyright The Nation 2018-07-17

[cornishcarlos]

Don't worry, poverty will be eradicated before the next election... 

Just tick this box on your ballot paper ?

[Nigeone]

Is this not just about living beyond your means ?? Seems like it . Borrowing money and being unable to repay the interest . We've all been there's in the west ,or most have and know well the problems it brings .

Edited July 16, 2018 by Nigeone
Added

[davehowden]

" whose status as teachers held them up as examples for the nation’s youth, "

 

So getting yourself into a stupid amount of debt and then being unable to pay off the loan makes you an example to the nation's youth, maybe an example not to be followed !!!

[cornishcarlos]

1 minute ago, davehowden said:

" whose status as teachers held them up as examples for the nation’s youth, "

 

So getting yourself into a stupid amount of debt and then being unable to pay off the loan makes you an example to the nation's youth, maybe an example not to be followed !!!

 

They could just charge parents more for the compulsory, extra curriculum classes that they run after school !!

Where there's a will, there's a way ?

[kannot]

10 minutes ago, Nigeone said:

Is this not just about living beyond your means ?? Seems like it 

and the "its  not  my fault syndrome" also.

Unlike the west many dont  have mortgages either  especially in rural areas no doubt which is where  a  lot of the Wests borrowing lies............hey ho Somchai thats a nice new "Look at me big  face Fortuner ya got there"

They're all up to their ears in debt round by me, asking to  borrow  money etc etc even the local shop owners asked us.

Edited July 16, 2018 by kannot

[kannot]

So is that 100 out of 450000  borrowers  then? or as Id  say the "irresponsible"

[stanleycoin]

Typical Thai behaviour.

Not wanting to take responsibility for there actions. 

 

These are school teachers !!!!!!!!!!!!!!!!!!!!!

The Thai education system in its full glory. 

Kids have no chance, with roll models like this. 

Edited July 16, 2018 by stanleycoin

[greenchair]

I just really don't understand what they are complaining about. 

They borrowed money at an already reduced interest rate and now they want the government to pay it back for them. 

I have a credit card debt at 29 percent at micky mouse bank. I would like all patrons of micky mouse bank not to pay their credit card until the bank agrees to repay the money for us all. 

???

[greenchair]

15 minutes ago, cornishcarlos said:

 

They could just charge parents more for the compulsory, extra curriculum classes that they run after school !!

Where there's a will, there's a way ?

Or the compulsory donation to the school charity fundraising. 

Edited July 16, 2018 by greenchair

[happy chappie]

Dealing with banks,tut tut,they should of read the small print and used a calculator before borrowing money.ive got no sympathy for them.my neighbor thinks she something else because she's a teacher.rides around in her fancy Honda talking down to my wife.brings a smile to my face when the two lads in black helmets turn up to collect the daily interest.its not just the teachers,it's the lot of them up to their necks in debt and mostly for cars.my best pal in the uk earns nearly 300,000b a month take home and drives a 10 yr old Ford Focus.these teachers earn a 10th of that and drive around in cars costing 20 times that.

[colinneil]

The main problem is the banks, teachers want to borrow money they go to the government bank show their government i.d. ask for a loan get it.

Not enough checks done to see if they can afford the repayments.

Many thousands of teachers have serious debts that they cannot repay.

There is a teacher at my wifes school who only has 2000 baht left per month to live off.

[Sonhia]

Teachers in DEBT!!! Is the report for real?!

 

Extortion plus corruption spring to my mind when thinking  about schools in Thailand.

 

I've known of many teachers to have businesses, lands, homes, drive Mercs and BMs, wearing designer accessories plus clothing, jetting off here and there and so on...

 

A percentage of the Budgets, including other forms of funds supposedly raised for students education, are normally diverted into the pockets of many so called qualified teachers, including their piers..

 

 

T.I.T  Extortion . Corruption.

 

 

 

 

[coulson]

I thought Somkid just said the other day that they have eradicated debt?

 

1 hour ago, webfact said:

Teacher Auychai Watha said for the past seven years he had paid a monthly instalment of over Bt7,000 to repay the Bt1.2 million he had borrowed. Though the capital amount owed had been reduced by Bt100,000, it left him still owing Bt1.1 million

Well teacher Auychai, it was likely in the small print, a pesky little number called interest and you've just managed to just cover it plus chip away a little bit of the principal. I hope you're not a math teacher.

 

This sob story is a classic example of the hopeless situation wrt household debt across the country. Almost nobody understands what they are getting themselves into with loans of any description. 

[Jeremy50]

If you don't have the money, don't buy it. It really IS as simple as that. The bank is a business, not a charity. 

[Topdoc]

2 hours ago, webfact said:

Teacher Auychai Watha said for the past seven years he had paid a monthly instalment of over Bt7,000 to repay the Bt1.2 million he had borrowed. Though the capital amount owed had been reduced by Bt100,000, it left him still owing Bt1.1 million.

After 7 years the capital amount reduced by Bt100k from Bt1.2m to Bt1.1m

So after another 77 years the loan will be repaid.

Sign here on the dotty line _ _ _ _ _ _ _ _ _ _ 

 

 

[a977]

Just now, Topdoc said:

After 7 years the capital amount reduced by Bt100k from Bt1.2m to Bt1.1m

So after another 77 years the loan will be repaid.

Sign here on the dotty line _ _ _ _ _ _ _ _ _ _ 

 

 

Can't help but feel sorry for Thais, they just don't understand the principles behind borrowing !. first you pay back the interest then you pay back the loan money.  Sssh! and these people are teachers 

[Lungstib]

I would be looking at the school car park to see if the answer lies in the car purchased. A lot of status here in what you drive and unlike many of the people sporting uniforms they maybe have less chance to 'add to their legal income'. I see one teacher in my poor village neighborhood who rides a motorbike to work. There is 500,000b saved right there.

[happy chappie]

For sure the crap with hit the fan sooner or later with millions of toxic loans and we all know what happens then.all it takes is one bank to own up to what's going on and it will snowball.weve seen it in the west,property going through the roof and people taking out loans on the strength of their over inflated houses,land.as sure as eggs are eggs it will happen here.its all a false economy with everyone cooking the books through greed.

[BritManToo]

36 minutes ago, Jeremy50 said:

If you don't have the money, don't buy it. It really IS as simple as that. The bank is a business, not a charity. 

Government Savings Bank is actually a charity for government employees.

"We're poor, we're poor!" usually gets them something off, which is why they cry this every year or two.

Edited July 17, 2018 by BritManToo

[JWRC]

Most lending institutions in other parts of the world, have a look at your income and assets and have a formula for what they consider you can repay, not so in Thailand.

 

Also Economics is not taught in most schools.

 

Through lack of education, or maybe just lack of intelligence many people  think about what they want to borrow, not the amount they have to repay.

 

Take the guy who wanted a  motorbike, priced back then at 35,000 THB. He borrowed from a private lender the total amount and arranged to pay interest only at 3,500 baht per month. Doesn't sound like a lot, but at that point his monthly wage was 7,000 THB, he had a stay at home wife and 2 small children. It is mission impossible and you don't have to be Einstein to work that out.

He made the first payment and couldn't pay any more, at the end of 12 months, to the day, the lender turned up and tossed him out of his house, of course he had put the house up as collateral. His father had given him the land and paid for the house to be built so the guy wasn't having to pay rent only utilities. His situation now is very different.

 

Not that this has anything to do with the stupidity of the whole thing but, the interest rate from the private lender was illegal and way over the top, but as I was told at the time, they wouldn't complain to the authorities as they would end up dead.

[upu2]

2 hours ago, Nigeone said:

Is this not just about living beyond your means ?? Seems like it . Borrowing money and being unable to repay the interest . We've all been there's in the west ,or most have and know well the problems it brings .

Possibly they are but what are the salaries they receive? I dont know so I am asking. Is it sufficient to provide someone with the essentials i.e. food, clothes, shelter etc. do they get paid on time or are payments quite often late? If not then they have justification for complaining

[scorecard]

56 minutes ago, coulson said:

I thought Somkid just said the other day that they have eradicated debt?

 

Well teacher Auychai, it was likely in the small print, a pesky little number called interest and you've just managed to just cover it plus chip away a little bit of the principal. I hope you're not a math teacher.

 

This sob story is a classic example of the hopeless situation wrt household debt across the country. Almost nobody understands what they are getting themselves into with loans of any description. 

1. It seems that many teachers are illiterate in regard to even economics, budgeting,financing, etc., but that's no excuse. 

2. It seems that teachers think they are entitled to get free money etc., just because they are 'teachers'. 

3. It seems that many agencies including bank are derelict in the way they manage funds, and they should know better.

 

All of this comes back to education.

 

Further, I wonder when the 'the Funeral Service Welfare for Teachers and Education Personnel fund was last audited?

  

 

[DoctorG]

It may well be that the lenders are partly responsible for the problem but, in the end, the decision to take the loan lies with the borrower.

[klauskunkel]

Dear Angry Teachers,

after you read something, try and understand it.

[mikebell]

It's nothing to do with being a teacher; lots of people here are in debt across a variety of professions.  It's to do with honour.  If you borrow, it's the honourable thing to pay back your debt.

[connda]

Someone explain to me how people making 15K to 20K THB and month can afford vehicles that cost 650K to 1M THB.  But look at the number of those monsters that are on the road.  That's all debt driven consumerism based on predatory lending.

[kannot]

1 hour ago, Jeremy50 said:

If you don't have the money, don't buy it. It really IS as simple as that. The bank is a business, not a charity. 

worked for me in all my 55 years, today they all want it "now" new house new  car new designer clothes (ordinary wont do) eat out permanently rarely cook for themselves and the amount of those 30 baht iced drinks they chomp through is astounding.

[baboon]

1 hour ago, Jeremy50 said:

If you don't have the money, don't buy it. It really IS as simple as that. The bank is a business, not a charity. 

But, but how can any human being possibly survive without this year's phone and a vehicle that could transport a battalion of marines across the Mekong Delta? 

[yellowboat]

The worry is that these people are in charge of shaping Thailand's future.  Being in debt makes them vulnerable and distracts them from an important job.  Difficult to manage personal debt in Thailand and dangerous roads are sadly the norm.    Education will save Thailand from itself.