Solution to household debt must be found: Minister

[CeeGee]

4 hours ago, KhaoNiaw said:

You don't just 'give' finance companies a guarantor. They have to go in person, with ID card, bank statements, pay slips, etc. etc. I don't doubt that he's done a runner, common enough story, but whoever told you the bit about the 6 year old was over-egging it.

#After they came twice looking for him,they then asked for the person who was named as the guarantor,who according to their paperwork had the same name as his 6 year old daughter and lived at the same address.

I don’t know the ins and out of how and where but they certainly came looking for her

[SOUTHERNSTAR]

Well its not a Thai problem its a world problem. Lets look at facts. Japans national debt is at 234% of GDP and Thailand at 41,6%. The personnal debt in Japan is 57% of GDP and here 78%. The problem is that with income levels the 78% is not easy to repay. The question must be why is the debt load so high.
1. Lack of financial education.
2. Companies using marginal if not predatory marketing to maximize profits.
3. The junta trying to make the economy look beter than it is by motivating people to spend more. This was done through more public holidays, shopping with tax benefits, traveling with tax benefits.
4. Structural economic issues. Due to the big local vehicle manufacturing sector past governments imposed hefty import duties on vehicles. This makes vehicles here much more expensive, thus more finance needed to buy a vehicle.
Lax laws regarding loans made it possible for people to buy 2nd ....10th properties with little or no deposits. This inflated the property market. Thus if you want to buy a property you had to take a bigger loan. Related to this the inflated property market reflects also in expensive property rentals.
5. Lack of productivity growth. Since the junta coup the productivity in the country has decreased. The reason for this is that companies stopped capital spending. This led to older outdated equipment being used. The lack of productivity growth hampers the increase in wage growth. With increases in living costs and stagnant wages the pressure is increasing on households with debt. Many households took on debt which was affordable at the time but due to stagnant wages and increased living cost they are no suffering.
Yes there are Thais that take on debt they should not but that is a worldwide problem, just think back at the sub-prime collapse in the US a few years back.

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[Cake Monster]

On 7/23/2019 at 3:55 PM, overherebc said:

As long as the desire to have a 1.8 million baht car when you're living in a 600,000 baht townhouse exists then nothing will change.

To so many Thais, there is massive kudos in having a 1.8 M car, but very little in owning a Home.

Many, many  Thais do not live in 600K Townhouses, but live in 1500 Baht a Month ( +Electric and Water ) rented Dormitory Apartments.

A space usually about 4M x 5M.

They have no assets, yet the Banks keep lending money to them, as long as they have a Job. 

Only last week I saw a brand new car being advertised in a Shopping Mall for a 9 - yes 9 Baht deposit

A ridiculus situation.

[NotYourBusiness]

2 hours ago, SOUTHERNSTAR said:

Yes there are Thais that take on debt they should not but that is a worldwide problem, just think back at the sub-prime collapse in the US a few years back.
 

The financial collapse of 2008 was the greatest engineered wealth transfer in the history of the world. It was no accident. Lending institutions knowingly gave giant loans to anyone who could fog a mirror, executives collecting huge salaries and bonuses the whole time, knowing the government would bail them out.  And the government didn't disappoint, leaving the taxpayers to foot the bill. Yeah ok, Bear Sterns went out of business, as they all should have.

 

Since then, nothing has changed, the casino is still in full swing. The situation today is far WORSE than it was then. The piper will be paid, and it's gonna be ugly.

[khaowong1]

On 7/23/2019 at 2:19 AM, djayz said:

If they want a living wage, maybe they should:

1) learn some skills which would help them do a decent job like customer service, broaden their knowledge of the products they're trying to sell, etc.,

2) improve their work attitude, 

3) quit standing/sitting around all day, every day glued to their phones, admiring themselves in the mirror or chatting with colleagues. 

Then, and only then, are they worth paying more. 

From nothing comes nothing. 

 

This, as another member has already stated, would not help the problem of spending the max. The more they earn, the more they're going to spend/borrow. Paying them more is not going to solve the core issue - self-control, living within their means and being less concerned about the perceived status these shiny new vehicles, gadgets, etc. bestow on us. 

This has been on going since man first got a paycheck.  I don't see a end anytime soon. 

[djayz]

4 hours ago, khaowong1 said:

This has been on going since man first got a paycheck.  I don't see a end anytime soon. 

Good point, but some people do learn/have learnt...

[CaptainJack]

What breaks your heart and infuriates you at the same time is to watch your Thai girlfriend,  a university graduate,  smart as a whip still have to work 14 hours days, and have her scumbag Thai men bosses come up with lame excuses to not pay her, or her coworkers their full salary.   And that is only 30k baht a month. 

 

And the post about the average Thai living in a dorm apartment?  That is for those that can afford even that.  Most I met through my old girlfriend lived with family.  Thank God the family structure in Thailand has not collapsed,  like in the USA. 

 

The real insight is when you come to understand,  no matter how smart the Thai person may be, they are never,  even at the university level, taught about life outside of the mind control system in place in Thailand. 

 

I often find myself angry at how the average Thai people are essentially dehumanized by their own government.

 

I'll stop here, else my blood pressure will go up.....

Edited July 24, 2019 by CaptainJack
Correct a format problem.

[Lenny Jones]

On 7/23/2019 at 3:29 PM, smedly said:

stop lending people money who cannot afford to pay it back

 

make it easier for expats/retires to live here and spend

How true!

 

I bring in well over 1M baht/year and This country - through Immigration - treat me like dirt.  I've worked hard to fit into my local community and I'm respected and liked by those local who know me - Then there is the massive contrast with those who do not and clearly show their hatred of farang and that comes from guvvy policy - two-tier pricing and the treatment of foreigners as if they are criminals.

 

[DrTuner]

6 hours ago, CaptainJack said:

Thank God the family structure in Thailand has not collapsed,  like in the USA. 

It's already in it's death throes. The parents can't expect their offspring to care for them when they are old anymore. A side effect of urbanization.

 

Social media is also to blame, it's just about as antisocial as it gets. 

[Bert Jones]

The Thai king is worth £24 billion. He's one of the wealthiest people in the world. He also has his own bank! The control mechanisms in place by the Thai hierarchy are working just fine, ...the brain washing begins where it does in every society - the school system.  The Thai people need to wake up!

[Redline]

No solution for the unaccountable~pay off all of their debts, and keep the no fail policy intact