Thais borrow early and get trapped in a cycle of debt

[webfact]

Thais borrow early and get trapped in a cycle of debt

 

 

Thais, nowadays, are indebted from an early age, and the level of their debt is maintained even as they approach retirement.

 

A study by the Bank of Thailand reports that Thais get into debt in their 20s and tend to borrow more as they age. It is not surprising, therefore, that Thailand’s household debt has steadily increased to 78.6% of the country’s gross domestic products (GDP), or Bt12.8 trillion in the fourth quarter of last year, according to figures from the National Economic and Social Development Council.

 

By comparison, household debts in Thailand averaged 49.89% of GDP from 1991 to 2018. Between 2008 and 2012, the figure rose 12.8% per year, and its size, relative to GDP, surged from 56% to 77%. Thailand is now a top-ten highest household debt country among 89 countries worldwide and third highest among 29 Asian countries.

 

Full story: https://www.thaipbsworld.com/thais-borrow-early-and-get-trapped-in-a-cycle-of-debt/

 

 

-- © Copyright Thai PBS 2019-08-13

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[RichardColeman]

I think we can all see the signs that Thailand is going to really have it hard soon, and once those borrowers start being laid off as there's nobody to export too and the tourists are not coming or spending that debt is going to be near the 90% mark pretty quickly as the previous years they had reliable income streams

[dcnx]

The music will stop eventually.

 

I’m absolutely shocked to hear people making 9000 - 15,000b per month can’t afford a new car and the latest iPhone.  

[leeneeds]

Same for all the world where credit is offered by  institutions,  bait the hook, 

and reel in the the ones who bite,

going with out is not in a lot of peoples vernacular, when they should be reading the fine print and thinking,

nothing is free.

[leeneeds]

51 minutes ago, RichardColeman said:

I think we can all see the signs that Thailand is going to really have it hard soon, and once those borrowers start being laid off as there's nobody to export too and the tourists are not coming or spending that debt is going to be near the 90% mark pretty quickly as the previous years they had reliable income streams

As you say, 

always borrow more from the Chinese great rates on offer, when the government keeps showing the blasé attitude to going with out , really a poor lesson being shown to its people.

[ezzra]

Inherently, Thais mentality is 'Let's spend now and think how to repay it later' are also bad at money managements, loyalty  and diligence to a workplace not to mention honesty, plus their family commitments to help each other at all time, so no wonder most thais are cashless and wanting, and the never ending chase for luxury items puts them in the hock even further...

[Cadbury]

1 hour ago, webfact said:

Thailand is now a top-ten highest household debt country among 89 countries worldwide and third highest among 29 Asian countries.

And the government is hell bent on delivering a stimulus package which will include easier loan access for workers, small business and farmers. 

That proves they don't give a toss about the terrible household debt situation. Added debt for these people is just a means to and end to get the economy stimulated. They don't care about the personal damage it does to the lives of people.

As it happens the man who appointed himself to manage the economy is the same man who yesterday expressed his faux concern for low income people; the one's who will be tempted into taking the easy loans in his stimulus package. 

What does the National Economic and Social Development Council think of that?

[PatOngo]

The cost of face! It's an expensive must have.

[gunderhill]

Seems  like im the last generation not to  fall into the "stupidity trap"  of borrowing when saving for something before  buying it, which made it  all the more enjoyable when you finally  got it.

I  dont like borrowing for ANY reason and  after 18 yrs  old never  did except £15k for a  house back in the mid 1990's and even then the bank was reluctant ot lend such a small  amount.

People seem to think everythings  easy these  days, life  really IS  too easy, they all need a  good  kick to let them see it isnt.

[gunderhill]

5 minutes ago, PatOngo said:

The cost of face! It's an expensive must have.

The cost of stupidity.

[gunderhill]

11 minutes ago, Cadbury said:

think

youre mistaken????

[gunderhill]

1 hour ago, RichardColeman said:

I think we can all see the signs that Thailand is going to really have it hard soon, and once those borrowers start being laid off as there's nobody to export too and the tourists are not coming or spending that debt is going to be near the 90% mark pretty quickly as the previous years they had reliable income streams

not  only  that but with their mental  attitude it "wont be their  fault" thats when the shit will really hit the fan as its  "who can we  blame" when the rioting will start and farangs  will be a  nice target.

[Tayaout]

I paid my wife credit card. In exchange she had to surrender it to me. What is ridiculous is that she maxed it buying gold for her family. At least gold is up. ????

[Tayaout]

15 minutes ago, gunderhill said:

Seems  like im the last generation not to  fall into the "stupidity trap"  of borrowing when saving for something before  buying it, which made it  all the more enjoyable when you finally  got it.

I  dont like borrowing for ANY reason and  after 18 yrs  old never  did except £15k for a  house back in the mid 1990's and even then the bank was reluctant ot lend such a small  amount.

People seem to think everythings  easy these  days, life  really IS  too easy, they all need a  good  kick to let them see it isnt.

I think the same but a lot of rich peoples don't.

 

[moontang]

12 minutes ago, gunderhill said:

Seems  like im the last generation not to  fall into the "stupidity trap"  of borrowing when saving for something before  buying it, which made it  all the more enjoyable when you finally  got it.

I  dont like borrowing for ANY reason and  after 18 yrs  old never  did except £15k for a  house back in the mid 1990's and even then the bank was reluctant ot lend such a small  amount.

People seem to think everythings  easy these  days, life  really IS  too easy, they all need a  good  kick to let them see it isnt.

me too, got a mortgage for 28,500 in 2001.  Saw at least 20 terrible drivers on my soi, likely owing more than that On their empty trucks.

[faraday]

The way some people have posted on this thread, is as if there aren't Credit cards/very high interest loans/scratch cards/ sub prime mortgages in Farangistan.

 

But then by conveniently ignoring those facts, it gives some the opportunity to deride those 'greedy thais'.

[gunderhill]

2 minutes ago, faraday said:

The way some people have posted on this thread, is as if there aren't Credit cards/very high interest loans/scratch cards/ sub prime mortgages in Farangistan.

 

But then by conveniently ignoring those facts, it gives some the opportunity to deride those 'greedy thais'.

is it not a "Thai" forum?

[faraday]

10 minutes ago, gunderhill said:

is it not a "Thai" forum?

Comprehension not your strong point, Mr Underhill??

 

[gunderhill]

2 minutes ago, faraday said:

Comprehension not your strong point, Mr Underhill??

 

clearly

[mok199]

I watched yesterday as a family ( obviously very poor ) stopped at a roadside check point ( which is nothing more than a cash grab) was issued several fines , then a group of young thai males on loud scooters ,no helmets blasted through without stopping ....This Nation is out of control....

[faraday]

9 minutes ago, gunderhill said:

clearly

Glad we agree on that.

 

Here, have a banana as a consolation prize.

 

????

 

Enjoy your day. ????

[brokenbone]

comes close to the american dream: buy a house that you cant afford

[PatOngo]

14 minutes ago, brokenbone said:

comes close to the american dream: buy a house that you cant afford

Or a gun!

[robblok]

1 hour ago, faraday said:

The way some people have posted on this thread, is as if there aren't Credit cards/very high interest loans/scratch cards/ sub prime mortgages in Farangistan.

 

But then by conveniently ignoring those facts, it gives some the opportunity to deride those 'greedy thais'.

I work with a debt help organisation (not debt collectors but the kind that negotiates with all the creditors to consolidate debt and get a favorable payment plan) in my country I file taxes for those in debt. Its amazing how many are in debt so its certainly not a Thai thing no matter how much the resident foreigners want to make it so. I see people of all kinds in debt even with high incomes. But majority in debt is those on benefits. 

[gunderhill]

1 hour ago, faraday said:

Glad we agree on that.

 

Here, have a banana as a consolation prize.

 

????

 

Enjoy your day. ????

where do i stick it though?

ps "G......Underhill"????

[Joe Mcseismic]

From my own observations.

A Thai person wants to borrow 10,000 Bt.

Interest is 5% per month.

The mindset is "I only have to pay 500 Bt a month", which is easily do-able.

There is no thought whatsoever about paying back the principle.

 

[legend49]

so whose fault they are in debt? Are farangs to be blamed for that too?

[30la]

If this bubble bursts ... goodnight guys ...

[geoffbezoz]

43 minutes ago, Joe Mcseismic said:

From my own observations.

A Thai person wants to borrow 10,000 Bt.

Interest is 5% per month.

The mindset is "I only have to pay 500 Bt a month", which is easily do-able.

There is no thought whatsoever about paying back the principle.

 

Which is 60% per year simple interest for these loan sharks, something the Thai government is attempting to stop

[Joe Mcseismic]

2 minutes ago, geoffbezoz said:

Which is 60% per year simple interest for these loan sharks, something the Thai government is attempting to stop

There is already a law that states the maximum interest allowed is 15% per annum.

Very hard to enforce............so, it isn't.