Household debt at record Bt340,000

[Sticky Wicket]

13 hours ago, Fex Bluse said:

But other factors are quite different. 

 

Advanced economies are productive and well managed and can recover rapidly. 

 

Thailand is a regressive economy with exceptionally unproductive workforce that is also not addressing structural issues such as education. 

 

Nothing alike really 

And a rapidly ageing population. That is about to hit very hard

[saengd]

6 minutes ago, Fex Bluse said:

I mean, sure. 

 

If you think that 

 

1) Thais are generally economically better off than advanced, richer, more stable countries 

 

2) Thailand, in its infinite ancient wisdom, will, IF it ever develops into an advanced economy, somehow escape the realities of social welfare that every single other advanced economy has gone through 

 

... then, you are entitled to that opinion. 

I didn't say they were better off, I simply pointed out that the comparison is not as straight forward as your earlier post would have us believe.

[sammieuk1]

He expected more government economic stimuli will be needed by the middle of the first quarter of 2020 to continue floating the economy

 

Call it the Phoenix economy not fit for purpose???? 

[Henryford]

The figure is meaningless if it includes mortgages. Most mortgages would be well over 340k and no problem for people to pay off. If it's 340k on a credit card then that's a very different picture.

[zydeco]

58 minutes ago, DrTuner said:

Not long until there'll be blood on the streets. Get your investment money ready.

Don't worry. All those locked in 800,000 baht farang retirement accounts can be confiscated and bail everyone out.

[RichardColeman]

14 hours ago, MeePeeMai said:

Their only hope is a bill consolidation loan with a large cash payout and an extended term. 

Problem with that line of thought is that by consolidating their loans it will encourage them to get another loan to use whats left rather than set themselves up soundly

[Bundooman]

4 hours ago, Yadon Toploy said:

My Thai friend has plastic to the tune of 600,000thb from different banks. They are maxed out and she earns 18,000thb a month. This is partly due to her negligence but also her nasty little sh*t Thai boyfriend and his lifestyle.

 

I earn 650,000thb per month and my credit card limit on the one credit card I have was set at 200,000thb. I have 30,000thb on it now.

 

Yep, the Thai economy is wobbling, and debt is at unsustainable levels.

 

All gonna end in tears. 97 anyone?

 

 

You earn 650.000Bht per month?

Wow! That's 7.8 million Bht per year.

Good for you.......

[david555]

Be sure many sick buffaloes story's or equivalent  coming farang way , prepare yourself by rehearsing the excuses.... 

[BoBoTheClown]

Like they need to be lectured by broke farangs who got ran out of the West due to poor work ethic and bad decisions. Take a look in the mirror before you talk. 

[ThomasThBKK]

2 hours ago, DrTuner said:

Nice feeling isn't it? I did that over 20y ago, ever since I've been gathering wealth and now I got no money worries. It's not the income but the low expenses that allow for wealth to accumulate. Something Thais will never get because they need the idiotic face pumps.

Cashflow, leverage, compound interest and co seem to be missing in thai dictionaries.

Even to bank stuff i had to explain why refinancing makes sense for me, on a paid off property, due to better cash on cash ROI here... they just didn't get it.

Financial illiteracy will kill the middle class here imo.

[Stef]

650,000 a month? Wow !

[billd766]

13 hours ago, farangchuma said:

What's wrong with borrowing when money is so cheap. I have three houses on borrowed mone. All the hoouses are rented on AirBnb and the income pays for the mortgage. I get 6% return on the 20% downpayment. Love the debt.

It may not be a problem to you, but a lot of Thais have borrowed the maximum that they could and despite government propaganda, many of them are being laid off from their jobs which means that they will be unable to repay their debts.

[khunPer]

Both the inflation and the core inflation are low – i.e. 0.11% and 0.44% year-to-year by October 2019 – so rising debt might merely be in general slightly increasing living standard, than increasing prices.

 

340,000 baht dept including mortgage doesn't sound that awful bad compared relative to many "first world" countries.

 

The wish to change Thailand from a low income country to a high income country has some costs, for example spending – and wish for higher lifestyle – might be faster than the income increase; especially when it's easy get plastic-money.

 

In my home country we call it "luxury trap"...????

[Cereal]

They didn't mention the unnecessary purchases of stuff people absolutely do not need just to keep appearances up. 

 

I paid 3000 baht for my Huawei phone 4 years ago - still works great

 

I bought a new Kia Picanto not a Toyota Fortuner

 

I buy trainers for 500 baht not Adidas or Nikes for 5000

 

I make 45,000 baht a month and save 1/3 of it every month. 

 

Being neck deep in debt is more often than not entirely preventable. 

[metisdead]

An off topic post about the US national debt has been removed. 

[Cake Monster]

Thai household debt growing at 7.4 % over the last 12 Months is very troublesome indeed.

It matters not what the debts are for, whether its for Mortgages, Cars Etc, the fact is that the rates of pay Thais receive have not risen in line. If anything their pay has reduced due to a lack of Overtime and Bonus,s Etc. Of course the NPL rate will now rocket as well due to these figures.

All of this is particularly worrying, as all the main Global Banking Institutions ( IMF, World Bank, Etc ) have been issuing warnings about the state of the Household Debt in Thailand for some time now, and it is one of the prime reasons why Bank Of Thailand cannot do anything about the rapid rise of the Baht, thus causing ripples throughout the whole Economy.

Stormy seas ahead

 

[zydeco]

1 hour ago, Fex Bluse said:

A decent number of us earn that and more. 

 

And the rich Thais earn FAR MORE than that. 

 

No wonder they walk with their noses in the air... (sarcasm) 

I don't.

[bradiston]

22 hours ago, BigBadGeordie said:

Rearrange these words.

 

Nail head on hit the.

 

Err, hit the nail head on?

[baansgr]

21 hours ago, Snow Leopard said:

You are joking right? The advanced economies haven't recovered since 2008, Unless you see printing [currency as a recovery? Unproductive or not. The Thai Baht is still increasing in value. Not many other countries can say that. 

I wouldn't want Thailand to be in recession but the ball is rolling fast...almost every Government agency the past month  is now stating what we have all known for the past year...one tremour...the oh so strong Baht could collapse overnight which could be very very soon

[glennb6]

new cars and trucks, new homes, huge TVs and fancy expensive phones. spend spend spend! Looks good, feels great, live for today Buddhist way, show of to the friends and neighbors, moar moar moar!

 

I think it's pretty sad that this has come to tland because it will not end well. blame first and foremost on the banks (who create and extend all this credit/debt) and secondly on the politicians who don't put a stop to the excess. thirdly, blame mr and mrs somchai for failure to think and only want want want.

 

I'd hoped this clusterf*ck was contained within the western world when I move here for retirement. One of these days when it blows up big time I just hope the govt doesn't whip up xenophobic nationalism and put foreigners on the dinner plate.

[glennb6]

I have to make one more point. Last week I read a BK Post article the jist of which is what do Thais think should be done about various problems, mostly financial problems.

 

The answers were govt should help them, govt should give them more money, govt should subsidize this that and the other thing, govt should bla bla bla.

 

Forgive my cowboy thinking, but typically govt IS the problem and is the last place people should be looking to for 'help'. Now maybe the article was supposed to show that govt is the only answer and was basically propaganda, and maybe Mr Mrs average Thai don't believe this <deleted>.

 

What's the truth? who knows.

 

 

[tabarin]

51 minutes ago, glennb6 said:

I just hope the govt doesn't whip up xenophobic nationalism and put foreigners on the dinner plate.

They already been doing that for a couple of years now.

[Sydebolle]

Cash is King - thought so by my father! 

[metisdead]

On 11/29/2019 at 3:10 PM, metisdead said:

An off topic post about the US national debt has been removed. 

 

Some more off topic generalizations regarding household debt in other countries have been removed.  As this topic is in the Thailand News forum, the topic is about household debt problems in Thailand. 

 

Forum Netiquette:

 

7. Please do not post off-topic responses in an attempt to hijack the thread. Such posts will be deleted. 

[billd766]

On 11/29/2019 at 3:12 PM, zydeco said:

I don't.

Me neither.

[owl sees all]

On 11/28/2019 at 8:41 PM, Snow Leopard said:

Its not just in Thailand. Pretty much every household in the world with an advanced banking system is swimming under a mountain of debt. Not only households either. Governments as well. Money has been to cheap to borrow for far to long. 

The money you refer to does not exist. It's simply bits of fancy coloured paper, marks on balance sheets or digits on a computer screen.

 

This creating money out of thin air will be the downfull of the western banking system. It's only a matter of time!

[Snow Leopard]

17 hours ago, owl sees all said:

The money you refer to does not exist. It's simply bits of fancy coloured paper, marks on balance sheets or digits on a computer screen.

 

This creating money out of thin air will be the downfull of the western banking system. It's only a matter of time!

Correct Mr Owl. Governments produce currency and then continually devalue it. That is why today people cannot save enough money for retirement. 0% on savings and the money that you earn is being devalued all the time. Eg. Fed REPO. QE4???