Thais borrow early and get trapped in a cycle of debt

[PatOngo]

8 minutes ago, Chrisswe said:

The root cause of this is lack of education , respect, responsibility , PROUDNESS , JEALOUSNESS AND LIFE-PLANNING !!!!!!

And keeping up with the lifestyle of Thai soap opera's!

[zydeco]

2 hours ago, Snuller21 said:

They start to buy a new Motorbike, and give 99 Baht deposit, and pay 2000 per month. Never finish it before they buy a new one again, and then again and again and again, then get a new mobile. Same happen there and again and again. Then a car, and happen again and again. Then borrow money for house, and then it happen again. Typical life of an Thai. Sadly it is going that way. Again and again. Then it happen again.

Typical of life just about everywhere that consumerism is god and advertising his prophet.

[Fred white]

32 minutes ago, muffy said:

Thai's like to borrow , but pay back is another story .

Yeah I'm in that situation now loaned 20,000 to a granddaughter to have a baby after 6 months my wife finally got 10,000 back almost a year later still haven't gotten the rest pretty much just wrote it off but I did learn a lesson I don't loan money any more don't care if it's a life or death situation

[Globe Trotter]

6 hours ago, leeneeds said:

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.

I have never owned a credit card, I have never taken out a loan. I rent my property and that is the way it's going to stay. If you don't have the cash to buy something, don't buy it 

[rkidlad]

58 minutes ago, faraday said:

I wasn't justifying it, & your last sentence is unnecessarily rude.

So what's the point in saying it? And how is it rude? When a child does something wrong and they try to say, "well, so-and-so did it as well" - what do you say to them? You say you don't care what other people are doing. You're talking to them and addressing the issue at hand. 

[ChipButty]

I was knocking this teacher off for a while from Loei she's on 15,000 a month and almost 500k in debt needless to say that got moved on "Can you help me" how many times have you heard that?

[0815]

Only one typical sentence comes to my mind when I read this "news": Never mind!
That's the result of it ...

[marko kok prong]

Don't borrow and don't lend especially here.

[neeray]

27 minutes ago, Almer said:

It took me a minute to work that out, but now i can see how right you are, i used to wonder what jobs all these people did riding about on there new motorbikes all day, the source of income they have is going to there parents for money every day

That may be true in some cases but the reverse is probably more true. Despite how little they earn, many offspring support the parents.

I personally know of many instances of this. It is the Thai way.

[Almer]

Things have changed a little bit for me and Mrs Thai that we now spend 50/50 Thailand Uk, so we sold the Thai house we built and got back all the money(just).

Decided to rent and see how things work out in the next couple of years.

We have taken a 12 month rent initially m, @ 8000 bt a month for a 4 year old 4.8 million bt house payable straight to the bank the owners have to make the shortfall or at the end of 12 months the bank will call the loan in( all documented and legal papers), thats the sign of bad times coming and we wanted a place to run to, so dusted of the house in the UK, but no sooner the family got wind we had sold wow did we get loads of visits and many were in the day time from the quite capable but lazy brigade

[Tayaout]

7 minutes ago, Fred white said:

Yeah I'm in that situation now loaned 20,000 to a granddaughter to have a baby after 6 months my wife finally got 10,000 back almost a year later still haven't gotten the rest pretty much just wrote it off but I did learn a lesson I don't loan money any more don't care if it's a life or death situation

My in-law wanted to borrow 10,000 to finish the roof on his patio. I asked my wife if she was comfortable donating this money to him because there is now way I'm lending money to anyone. So everyone is much more happier. I don't need to worry about a loan that will never paid back, my wife save face, my in-law doesn't has to pay me back and he help me when I need it. To this day they never asked me money again. 

[Almer]

2 minutes ago, neeray said:

That may be true in some cases but the reverse is probably more true. Despite how little they earn, many offspring support the parents.

I personally know of many instances of this. It is the Thai way.

Not the ones and many there are who sit about all day , when you are out and about this day look around how many new motorbikes and youths riding around doing nothing other than getting there parent/s deeper and deeper

[Srikcir]

7 hours ago, webfact said:

Thailand is now a top-ten highest household debt country among 89 countries worldwide

I see Thailand in the top-eleven highest from https://tradingeconomics.com/country-list/households-debt-to-gdp

 

  

Looking at the preceding ten countries, I'd say those countries are getting much higher value for their household debt than Thailand.

Case in point look at the Quality of Life Index rankings by country https://www.numbeo.com/quality-of-life/rankings_by_country.jsp where Thailand ranks 61^st versus eight of the above countries fall within the top 20 rankings. Only one country (Hong Kong actually an "economic region") ranks worse than Thailand at 68^th.

 

[Surasak]

6 hours ago, PatOngo said:

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

As my wife found when she visited the 'Face Shop' in the local Mall????

[neeray]

1 minute ago, Almer said:

Not the ones and many there are who sit about all day , when you are out and about this day look around how many new motorbikes and youths riding around doing nothing other than getting there parent/s deeper and deeper

There is no way that I can verify what they are doing (nor the age of there bike).

But I do know what I stated for fact. As I said, I know many who support the elders.

[Almer]

My wife having hard times herself years ago has or rather had a problem saying no to her in trouble friends and family, we had a little talk and i calmly explained that within 5 years you will be going to peoples houses begging for money and food like the old days, that did the trick

[Baerboxer]

6 hours ago, leeneeds said:

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.

 

The levels of private, corporate and country debt are shocking. 

 

If it implodes the world will have some very real issues very quickly.

 

 

[Almer]

3 minutes ago, neeray said:

There is no way that I can verify what they are doing (nor the age of there bike).

But I do know what I stated for fact. As I said, I know many who support the elders.

Not the youngsters who wont or cant work, yes we support my wife's mother in many ways including a new house to make life easier for her with that i am pleased to be in a position to do that, but the wife's son who had never worked comes to our house on a regular basis with his girlfriend and 3 kids for a handout on the new motorbike now 4 years old and asked for money for a new one, my reply was on yer bike mate as he didn't lift a finger when grans new house was built and its me at 70 who keeps the house up together for het

[Fred white]

23 minutes ago, Globe Trotter said:

I have never owned a credit card, I have never taken out a loan. I rent my property and that is the way it's going to stay. If you don't have the cash to buy something, don't buy it 

In a way rent is a loan you pay monthly to live there if you don't or can't pay they kick you out at least with a home loan eventually you own it (well as long as you make the yearly rent payments to the govt)

[Baerboxer]

34 minutes ago, Fred white said:

Yeah I'm in that situation now loaned 20,000 to a granddaughter to have a baby after 6 months my wife finally got 10,000 back almost a year later still haven't gotten the rest pretty much just wrote it off but I did learn a lesson I don't loan money any more don't care if it's a life or death situation

 

Thais regard loans, especially within the family, as gifts.

 

My wife's sister telephoned one day to say she was on the way to the garage to buy her new car. Only she was ThB 20k short and could my wife transfer it quickly to "lend her". Next she opened a new restaurant and wanted another 20k loan to buy stocks of ingredients etc.

 

After 12 months we asked about repayment via father-in-law. Sister said "oh, are they short of money now then need me to pay back". That attitude sums it up. No responsibility or accountability to pay back - you've more than me so I can take some; entitled mentality.

 

Since then she's had several issues with loan sharks and land deeds. Some of which were her parents and which she and her partner were not entitled to use as collateral.

[toofarnorth]

48 minutes ago, cmsally said:

I use a 10 year old Nokia ' not smart' phone. I inherited it from a visiting Californian friend who was visiting Thailand for 6 months. It is still going strong!!  I am the extreme of phone frugality. 

I was well taught in the subject of appreciating and depreciating assets !!

I too have a 10 yo Nokia , when it rang one day in Pai a couple of years ago , it caused much amusement from visiting young back packers.  Hey ! it tells me who is phoning , I can make calls with it , it contains lists of numbers I use , let folk find it fun , it does all I want . Of cousre if I subscibed to Sit on my facebook it might let me down.

[Katipo]

As is mentioned in the article, a lot of this debt is due to mortgages. While there could be a property crash (it hasn't happened yet, and many have said it should have), this at least isn't as bad as credit card debt or that on the likes of cars and other depreciating assets. Currently I am inclined to think there will be a correction, not a collapse. A correction may take out the more exposed, but it won't lead to vast swathes of the population going into bankruptcy or similar.

[kevinmartyn]

It's not just Thai's that get roped into debt by "Banks" and lone companies!

Recommendations which all Thais young and old it to act now.

 

1.) If you cannot afford it, don't buy it!

2.) Do not use "Credit Cards" and "ATM Cards" in fact cut them up now. Don't be mislead into thinking they are convenient! They were designed to get "Joe-public" YES! that's you smiling people of Thailand.

3.) Get into the habit of budgeting monthly and physicaly get off your "Ass" and go to the Bank and take out your budget for the month! IF YOU SPEND IT ALL ON A SINGLE PURCHASE then you are past saving.

4.) Remember the THAI Government is NOT going to bail you out of debt.

 

5.) When you go to the Supermarket or local shop or even to buy clothes and hygiene products....Write down exactly what you want to buy and stay away from the flashing lights fooling you into thinking you really need it now.

6.) Do not take out a loan for a NEW car or motorcycle and take on long term debt! These are designed to get you to spend and pay high interests!

7.) If you want to buy a house but do not have the cash to do so "WAIT" why pay 2,3,4 or more for the house/Condo....Buy in cash...

OK,OK your saying this "foreign" is a "Ting-tong", but his telling you the truth.

8.) it's up to you as the sayii goes in Thailand!????????????????

[Almer]

11 minutes ago, kevinmartyn said:

It's not just Thai's that get roped into debt by "Banks" and lone companies!

Recommendations which all Thais young and old it to act now.

 

1.) If you cannot afford it, don't buy it!

2.) Do not use "Credit Cards" and "ATM Cards" in fact cut them up now. Don't be mislead into thinking they are convenient! They were designed to get "Joe-public" YES! that's you smiling people of Thailand.

3.) Get into the habit of budgeting monthly and physicaly get off your "Ass" and go to the Bank and take out your budget for the month! IF YOU SPEND IT ALL ON A SINGLE PURCHASE then you are past saving.

4.) Remember the THAI Government is NOT going to bail you out of debt.

 

5.) When you go to the Supermarket or local shop or even to buy clothes and hygiene products....Write down exactly what you want to buy and stay away from the flashing lights fooling you into thinking you really need it now.

6.) Do not take out a loan for a NEW car or motorcycle and take on long term debt! These are designed to get you to spend and pay high interests!

7.) If you want to buy a house but do not have the cash to do so "WAIT" why pay 2,3,4 or more for the house/Condo....Buy in cash...

OK,OK your saying this "foreign" is a "Ting-tong", but his telling you the truth.

8.) it's up to you as the sayii goes in Thailand!????????????????

Your post could be to the world but in Thailand id is worse, my thoughts are a person with no job and no money in say Germany would not bother to look for  credit to buy a car, in Thailand it is turn up and drive away, show off for  a month or 2 and then its collected, then just do it again, this appears how its been, but times will change and when its not possible to get credit to service your ongoing loans that's when society starts to break down.

[Thaifriends]

Must see the comparison also

https://www.imf.org/external/datamapper/HH_LS@GDD/CAN/GBR/USA/DEU/ITA/FRA/JPN

 

After all the credit cards and loan tricks are from City Bank. Earn to pay / serve them ????

[Fred white]

6 minutes ago, kevinmartyn said:

It's not just Thai's that get roped into debt by "Banks" and lone companies!

Recommendations which all Thais young and old it to act now.

 

1.) If you cannot afford it, don't buy it!

2.) Do not use "Credit Cards" and "ATM Cards" in fact cut them up now. Don't be mislead into thinking they are convenient! They were designed to get "Joe-public" YES! that's you smiling people of Thailand.

3.) Get into the habit of budgeting monthly and physicaly get off your "Ass" and go to the Bank and take out your budget for the month! IF YOU SPEND IT ALL ON A SINGLE PURCHASE then you are past saving.

4.) Remember the THAI Government is NOT going to bail you out of debt.

 

5.) When you go to the Supermarket or local shop or even to buy clothes and hygiene products....Write down exactly what you want to buy and stay away from the flashing lights fooling you into thinking you really need it now.

6.) Do not take out a loan for a NEW car or motorcycle and take on long term debt! These are designed to get you to spend and pay high interests!

7.) If you want to buy a house but do not have the cash to do so "WAIT" why pay 2,3,4 or more for the house/Condo....Buy in cash...

OK,OK your saying this "foreign" is a "Ting-tong", but his telling you the truth.

8.) it's up to you as the sayii goes in Thailand!????????????????

I agree with some of what you said I do use a ATM card because it's easier than having to go to a bank and you can still budget

[hotchilli]

Many people are working for 10,000 - 20,000 baht per month range, with a home & family to pay for, school tuition, clothing; transport etc etc borrowing is the only way to go. If they're unlucky to be out of a job by 40 then re-employment is practically non-existent, many companies will not even give them an interview which with 20 years of experience under their belt & another 20 years of service to offer is ridiculous!

This government has got to do something jointly with the banks to get the country moving again.

But with a high Thai baht, slowing tourism, diminishing exports it's going to be a hard road ahead!

[Fred white]

5 minutes ago, hotchilli said:

Many people are working for 10,000 - 20,000 baht per month range, with a home & family to pay for, school tuition, clothing; transport etc etc borrowing is the only way to go. If they're unlucky to be out of a job by 40 then re-employment is practically non-existent, many companies will not even give them an interview which with 20 years of experience under their belt & another 20 years of service to offer is ridiculous!

This government has got to do something jointly with the banks to get the country moving again.

But with a high Thai baht, slowing tourism, diminishing exports it's going to be a hard road ahead!

Sounds like they need to do something about age discrimination in the work place

[PlastikbinLina]

8 hours 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

think we can all see the signs that Thailand is going to really have it hard soon.

All too true as can be seen by the increasing numbers of second hand car sales. But as many economists now agree a world recession is just around the corner and expected by 2020-2023. A leading financial news paper in Australia yesterday reported serious economic conditions are not far off.

[tabarin]

Car lease, brand new phones, condo mortgage and all this with little to no income while they are still students or just finished studying.
Add on a hefty education debt that includes external loans used for drinking and holidays.

Guess I should be driving a supercar and live in one of the biggest houses, with my income in comparison.
Many are bankrupt without even understanding it. Can't wait for buying all this stuff cheap thanks to them fools.