Young people spending beyond their means: BoT governor

[Crusader]

Well, it is not just the young - i know of people here (in their 50s) who just manage to pay the monthly bills - and have nothing left, so they start borrowing again...

[Assurancetourix]

13 hours ago, DrTuner said:

Zero education in personal finance. And it'll stay that way because the powers that be want to have consumers consuming.

Zero education in everything ;

zero education in sexual education

zero education about arithmetic ; they need a calculator to know 50 - 35 = ?

zero education about pollution 

 

And nearly all  of them think that money is growing on falang trees ...

[Curt1591]

Credit is poison!

[SmartyMarty]

A bit <deleted>in' obvious.

[Jimbo2014]

Wasnt it only a few months ago that dear leader was telling everyone to spend spend spend like crazy?  Is it any wonder then that debts are skyrocketing (more than the previous sky high)?

[Lacessit]

Nothing new about this, most young people spend beyond their means.

The best advice my father ever gave me was to avoid debt like the plague. The last time I owed money to anyone was 1974.

It's a bit unfortunate the main beneficiaries of my thrift seem to be women.

[Miami007]

Same, same as the USA - young people are spending too much (and old ones as well, for that matter).  

And if they were not spending, the economy were to collapse

[Thaifriends]

A person with THB15000 salary could get a car worth 500k financed then what else is needed?

 

Many young people becomes defaulters. Its worldwide where banks are on the loose.

[SuwadeeS]

As a matter of fact, Thai get very easy a credit card, or Aeon, or First Choice etc.

On the other habd a foreigner who wants to open just a regular saving bank account

with ATM service gets all a bunch of requirements and is totally discriminated.

 

I really do wish that the international community revokes any trade with THAI banks

till this issue is solved.

Further, I can only call all the foreigners to post all their bad experience in social medias!!!

[hotchilli]

14 hours ago, snoop1130 said:

A look into the behaviour of Thais found that they are spending more money and are incurring higher debts. This was especially so for the new generation, who have just graduated and started to work but are overspending and likely to shop online, he said

This scenario happens when the real cost of living by far outstrips the average income... 

young people need to have transport to get to work, get married, get a home, start a family etc etc 
when children reach schooling age the bills mount up.. borrowing is the only way out for many.
It's not always a case of "over-spending" mostly it's a case of trying to survive !!!

But that's something the elite with millions stashed away don't understand.

[overherebc]

57 minutes ago, Assurancetourix said:

Zero education in everything ;

zero education in sexual education

zero education about arithmetic ; they need a calculator to know 50 - 35 = ?

zero education about pollution 

 

And nearly all  of them think that money is growing on falang trees ...

Works as follows.

Take home pay 50,000

Car payment    36,000.

But the latest model saves you

2,000 in fuel costs.

So 50,000 minus 36,000 equals 14,000, but add 2000 for fuel saving so you actually have 16,000 to spend on your credit card.

[KKr]

1 hour ago, Assurancetourix said:

zero education in sexual education

don't think so, in School many girls get (made) pregnant and some even can do that at first try ????
compared that to fixing a leaking faucet or indeed deduct 50 from 35 and add 15

[alien365]

If the younger generation didn't have student loan debts or expected by society to give money to their parents every month then maybe their level of debt wouldn't be so high. 

[KKr]

my education was:
(1) if you cannot pay it you cannot afford it.
(2) borrow money only from decent banks and only for real estate
(cap on mortgage at that time 3 Annual salaries maximum, and 25 % down)

[KKr]

1 minute ago, alien365 said:

If the younger generation didn't have student loan debts or expected by society to give money to their parents every month then maybe their level of debt wouldn't be so high. 

1) do not think there are any student loans in LoS , but maybe I am wrong.
2) if pensions would be higher than the about 20 % of average salary I am being told about, there would be no need for children to support their parents financially

[Dnyy]

14 hours ago, bkk6060 said:

Western culture influence.

It's Thai culture and not western culture. Also, what do you mean by western? Just the US? 

[Caldera]

Unfortunately that seems to be a big issue pretty much worldwide. Some Thais I've talked to simply don't seem to understand that having to pay interest will trap them for a very long time, especially with credit cards and their astronomical interest rates. And heaven forbid something unforeseen happens (illness, unemployment).

[KKr]

22 minutes ago, overherebc said:

Take home pay 50,000

according to https://tradingeconomics.com/thailand/wages the average wage is 14353.55.
Now, let's do the calculation again.
 

[Isaan sailor]

Look who’s talking.  Bank of Thailand takes in hot money inflows, which begets record foreign currency reserves.  And this drives the Baht upwards, which in turn diminishes western tourism, exports And makes some unhappy expats...

[Dnyy]

42 minutes ago, SuwadeeS said:

As a matter of fact, Thai get very easy a credit card, or Aeon, or First Choice etc.

On the other habd a foreigner who wants to open just a regular saving bank account

with ATM service gets all a bunch of requirements and is totally discriminated.

 

I really do wish that the international community revokes any trade with THAI banks

till this issue is solved.

Further, I can only call all the foreigners to post all their bad experience in social medias!!!

Are you having some brain issues? How is it discriminating to have requirements to open a bank account? It's standard procedure world wide. Some people.... You hate it so much, then <deleted> leave. You are the type of foreigner I see daily in supermarkets/BTS/anywhere getting <deleted> at everything and everyone for no real reasons. 

[bronzedude]

Let the young keep spending. Let the old keep spending. Spending like crazy. That way the bubble bursts sooner than later. And the banks learn their lesson.

[Angry Dragon]

13 hours ago, Sir Dude said:

BoT governor doesn't realise it's his fault for letting this loose policy and predatory lending to all. Not OK, you have to lend to those who can service their debt and also not enslave those whose simply don't earn enough and are drowning in debt. How people that earn 15k baht a month are lent all sorts is just silly and asking for it really ... moronic really. 

The BoT's fault?  With the economy growing at a lower rate than its recent historical average, inflation very tame (1%), and the Thai baht at a high point, you would advise a tighter monetary policy?  People who borrow need to take responsibility for their actions, not blame banks on being "predatory" or claiming that they are "enslaved" by the banks.  Moms and dads, this is your responsibility, not central bankers.

[Surasak]

13 hours ago, mommysboy said:

There is a saying that 'you can only spend so much', but it is equally true that 'you can only spend so little'.  If an in work graduate can't afford to service a basic lifestyle then something is wrong wit the economy imo.  Actually we are seeing in work poverty in many countries these days with qualified professionals basically unable to live mostly due to crippling expenses.

 

As for saving, you can only do that if there is any money left at the end of the month!

Thailand is not alone; it is a worldwide problem. There is always too much month left when the money runs out

[Shiver]

When I met my girl she was a few years out of University, and had managed to rack up a loan that was well north of 200K.  I started paying it at the same rate as my rent.  That took care of the interest but very little of the principle.

I asked her how long it would take to pay off.  She didn't know.  When I told her that at this rate she would be 69 years old, she looked blankly at me, I don't think there was 'much doin' up there.

I paid it all off as a lump settlement on condition that she never, ever, *ever* borrow again.  One thing I learned is that the student loans are quite soft for the duration of education, but after that they rise quite sharply, and it would appear that at least in my girls case that was not something that was ever considered.

 

To this day everything (including car and other bigger ticket items) are paid for in full on day 1.

I'm not trying to be clever here, I came from UK with a fairly substantial debt on all the credit cards, and had to learn the hard way as I didn't have anyone looking out for me.  So now I handle all monthly expenditure, and she actions them and works her butt off.  It works well that way.

 

[Finnc99]

Sister in law has 1 child, earns 9000 a month and spends 5400 of it on the car payment, so she's left with 3600 for food, petrol, and other necessities. I really don't know how she survives. 

[Airalee]

“Gold is the money of Kings,

 Silver is the money of gentlemen,

 Barter is the money of peasants,

 but debt is the money of slaves”

 

-Norm Franz

[Peterw42]

The last 6 months I have watched my wife refinance her house with no job, the bank just wanted money coming into the account for 3-4 months. We literally took money out of the ATM and put it back into her account every Monday morning, I would divert my money from Australia through her account each month. The bank has just signed her up for a 2.5 million baht mortgage, with no job.

As bad as the household debt is, its probably also with no means to pay it back.

[Surasak]

1 hour ago, KKr said:

my education was:
(1) if you cannot pay it you cannot afford it.
(2) borrow money only from decent banks and only for real estate
(cap on mortgage at that time 3 Annual salaries maximum, and 25 % down)

You forgot, 'If you have to ask how much it is, you can't afford it.

[mmushr00m]

Same everywhere.

Young guys where I am, starting out at $60k, all buying flash cars, newest gadgets etc.

Then you hear some of the guys who have been on afew years. Working crazy OT, $85-100k a year to try and pay off the debts accumulated from when they started.

[0815]

15 hours ago, bkk6060 said:

Western culture influence.

Not unusual to see Thais spending 1/3 to 1/2 of their income on car payments.

Add rent and food put the rest on credit cards which are handed out like candy to anyone.

 

On this, a place like the US although higher incomes have major debt and most very little in savings.

National debt 10's of trillion.

 

All has to collapse at some point including here but they have been saying that for years.

 

So the foreigners are to blame again !