I recall just after Thaksin's loan program came out an employee of my past girlfriend had bought a new car and was starting to pay it on her 8000 baht salary at the time.  Absolutely ridiculous.  I blame the government more than the individual.

1 hour ago, hansnl said:

Oh yes, education is to blame.

What about common sense?

What about poverty and inequality. 

"About 40 per cent of the indebted respondents owed under Bt100,000, while 30.6 per cent owed between Bt100,000-Bt500,000 and 17.4 per cent between Bt500,000-Bt1 million. Another 8.2 per cent owed between Bt1 million-Bt3 million, 2.7 per cent between Bt3 million-Bt5 million and 1.1 per cent owed more than Bt5 million."

I have never felt so rich in all  my life 

9 hours ago, webfact said:

finance/leasing companies (16.7 per cent) and loan sharks (15.3 per cent),

Shocking how many are tangled up with these fiends. The former can only offer 28% at best. 

 

What can uncle Tu and his bent battalion offer as a solution in almost 5 years?

 

Didn't think so

8 minutes ago, coulson said:

What can uncle Tu and his bent battalion offer as a solution in almost 5 years?

In 2016 Prayut tried to use Article 44 to legitimize loan sharks by issuing new licenses to qualified operators to help low-income people avoid extremely high interest charges.

http://www.nationmultimedia.com/national/Govt-to-crack-down-on-loan-sharks-offer-lending-li-30287551.html

After two years even absolute power didn't seem to be the solution.

I am surprised to learn there is a Excessive Interest Rate Prohibition Act and was used to indict loan sharks operators. If the interests are within the law, loan sharks may be actually good for the informal lending sector or when you need a loan quick and you have no collaterals.  

That's a new crisis in making....
 
What will happen if they can't pay for their houseloans any more? The banks will start falling, good that they get so many Brits with 800k on the bank.[emoji16]
 
Strange that the baht can be so strong with this sword above the market.
 
 

Ah you’ve worked it out! Scrapping monthly pension income and demanding 800k in bank has an ulterior motive ! Just remember your legal protection for that money is “zilch”


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14 minutes ago, markaoffy said:

Ah you’ve worked it out! Scrapping monthly pension income and demanding 800k in bank has an ulterior motive ! Just remember your legal protection for that money is “zilch”


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

You will find that 800,000b is covered by the government and I think it's up to 10 million but this figure is coming down in 2022 if I can remember.none the less I don't trust these banks or government with one baht of my money.

30 minutes ago, Eric Loh said:

I am surprised to learn there is a Excessive Interest Rate Prohibition Act and was used to indict loan sharks operators. If the interests are within the law, loan sharks may be actually good for the informal lending sector or when you need a loan quick and you have no collaterals.  

Yes there are laws / regulations about maximum interest rates, however loan sharks have no hesitation to ignore these laws and no hesitation to add further unethical charges, and no hesitation to threaten, frighten and harass defaulters. 

 

 

'37.6 per cent were in debt for housing'

 

I'm not sure one can put a mortgage on a house in the same category as the rest.  If that were the case, then we'd likely be looking at a similarly high figure in UK, USA.

 

I don't doubt, however, that unsecured debt is a very big problem in Bangkok. 

6 hours ago, SoilSpoil said:

No problem at all. Go the American way, and with Draghi also the European now. Just print trillions of baht, lend out for free, let the economy grow, prices and wages will rise and let the resulting inflation deflate the value of the debts. The western economic house of cards model.

Comparing western economies, that are highly productive, to Thai 3rd class, regressive agricultural economy is like comparing vagina to anus

7 hours ago, PatOngo said:

Oh Lord won't you buy me a Mercedes Benz

My friends all drive Porches, I must make amends!...…….......JJ????

Worked hard all my lunchtime, to eat with my friends

So Oh Lord won't you buy me a Mercedes Benz!

1 hour ago, scorecard said:

Yes there are laws / regulations about maximum interest rates, however loan sharks have no hesitation to ignore these laws and no hesitation to add further unethical charges, and no hesitation to threaten, frighten and harass defaulters. 

 

 

True, there will always be people in desperate need and unscrupulous lenders who will exploit the situation. At least there are legal ways to combat exploitation. In most countries that have high income inequality, loan sharks will lurk. If you go to most casinos, you will likely to be approach by loansharks. In Malaysia, most lendees are due to gambling debts. 

7 hours ago, Assurancetourix said:

Oh yah ! as soon as possible so euro , US dollars and pound will come back to what they were twelve years ago ..

I remember 1 euro = 53 baht 

If you are over 60 now, it's unlikely you will see a strong pound to baht again in your lifetime. Those days of 80 baht to the pound were great, and I'm glad I was here at the time. It's so pitiful now, if I have to bring funds from the UK, it puts me in great pain. If the BREXIT vote had gone the other way we'd be looking at 60 baht to the pound right now.  Some kind of banking collapse in Thailand is the only way the baht would lose it's current super strong value.

4 hours ago, mommysboy said:

'37.6 per cent were in debt for housing'

 

I'm not sure one can put a mortgage on a house in the same category as the rest.  If that were the case, then we'd likely be looking at a similarly high figure in UK, USA.

 

I don't doubt, however, that unsecured debt is a very big problem in Bangkok. 

The problem is most loans are over secured. Most home owners who have any outstanding loans don't have the title deeds to their own homes in their possession, happy to hand them over for fast cash.

4 hours ago, mommysboy said:

'37.6 per cent were in debt for housing'

 

I'm not sure one can put a mortgage on a house in the same category as the rest.  If that were the case, then we'd likely be looking at a similarly high figure in UK, USA.

 

I don't doubt, however, that unsecured debt is a very big problem in Bangkok. 

The problem is most loans are over secured. Most home owners who have any outstanding loans don't have the title deeds to their own homes in their possession, happy to hand them over for fast cash.

5 hours ago, happy chappie said:

You will find that 800,000b is covered by the government and I think it's up to 10 million but this figure is coming down in 2022 if I can remember.none the less I don't trust these banks or government with one baht of my money.

Well i wouldn't trust on the government, i think in case of a bankcrisis the farang will loose their money first.

 

It also happened in Cyprus iirc..and my own government (holland) guarantees untill 80.000 euro. Everything above will be gone in case of a crisis.

 

I never understood how the financial system in Thailand works...what happens if they all stop paying monthly payments? Who 'll go bankrupt first and who'll be save by the government?

Same goes for new cars, they accept customers to buy a car which costs 70% of their monthly income. I think that's very high and risky but it works for Thailand.

yep let them go as the cowboy said of the stampede.

they are in the cycle now =

= jumping to the tune of capitalism -

 - biggest ponzi scheme in history.