Personal and credit card loans contribute to rise in Thailand’s household debt

[snoop1130]

 

Household debt for the third quarter of 2022 increased by 3.9%, to over 14.9 trillion baht for the first time in five quarters, largely due to the rise in personal loans and credit card borrowing, according to the National Economic and Social Development Council.

 

Personal and credit card borrowing for the third quarter of 2022 increased 20% and 10% respectively. The main issue of concern, according to the Credit Bureau, is the increase of NPLs on credit cards among the 30-49 age group of working people, while pensioners are bearing an average of 77,000 baht in car loan debt.

 

NPLs have increased from 4.3 million for the first quarter of 2022 to 4.7 million, 60% of which are personal loans. Total NPLs in the system amount to 400 billion baht, double that of the first quarter.

 

Full Story: https://www.thaipbsworld.com/personal-and-credit-card-loans-contribute-to-rise-in-thailands-household-debt/

 

-- © Copyright Thai PBS 2023-03-02

 

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[kickstart]

Wifes niece got married last week she is a nurse, he was qualified as a teacher, found no money in it do milks the family heard of cows .to dowry was 400k baht,and 4 baht's worth of gold about 120k.baht

I thought milking cows was a good paying business but no, the niece being a nurse borrowed 1 million baht from the nurse's fund, to fund the whole wedding, to pay back when.?

Having heard about police and teachers being in debt and now nurses, and who else.

It is going to be a slow action train wreck .......soon.

[ikke1959]

Thai people are learned to spend... the more the better.....important is to show how wealthy you are, in big parties, daily new clothes, cellphones, notebooks etc etc... especially when you work as a teacher, civil servant or whatever... The Government promote extra travels in more holidays, pay partly hotels and expensive goods at the holiday season,  More holidays to spend more..... and people do it even they can't afford it.. They buy cars, motorcycles all with borrowed money and many are in problems, so if banks don't give them money anymore, family and friends who worked and saved will be asked to help without paying back....

It is sad... but it will go wrong in the future... people must be educated to save first and than buy. 

[Gknrd]

No worse than anywhere else in the world. The worst debt you can have is credit card and car loans. Here in America I live across from a guy that makes 200K/yr , has four new cars.. A money pit.

[fdimike]

Eyes bigger than their wallet.  Thais love to show off how wealthy they are most all based on borrowed money.

[hotchilli]

10 hours ago, snoop1130 said:

Household debt for the third quarter of 2022 increased by 3.9%, to over 14.9 trillion baht for the first time in five quarters, largely due to the rise in personal loans and credit card borrowing, according to the National Economic and Social Development Council.

Only 3.9% I bet it was a lot higher than that.

[hotchilli]

9 hours ago, kickstart said:

Wifes niece got married last week she is a nurse, he was qualified as a teacher, found no money in it do milks the family heard of cows .to dowry was 400k baht,and 4 baht's worth of gold about 120k.baht

I thought milking cows was a good paying business but no, the niece being a nurse borrowed 1 million baht from the nurse's fund, to fund the whole wedding, to pay back when.?

Having heard about police and teachers being in debt and now nurses, and who else.

It is going to be a slow action train wreck .......soon.

The salary is livable... they just live beyond their means.

[nigelforbes]

25 minutes ago, hotchilli said:

Only 3.9% I bet it was a lot higher than that.

Consumer spending as a percentage of GDP is a mathematical calculation.

 

 

Edited March 2, 2023 by nigelforbes

[hotchilli]

9 hours ago, nigelforbes said:

Consumer spending as a percentage of GDP is a mathematical calculation.

 

 

A figures can be manipulated.

[zzaa09]

16 hours ago, Gknrd said:

No worse than anywhere else in the world. The worst debt you can have is credit card and car loans. Here in America I live across from a guy that makes 200K/yr , has four new cars.. A money pit.

This mindless and fanciful consumptive, accumulative and wasteful lifestyle does catch up eventually - especially when there is no real wealth to be had. 

 

All too typical throughout societies like the U.S. - where government, corporate and most certainly personal debts have no bounds. Part and partial of the delusion. 

[Hawaiian]

On 3/3/2023 at 2:19 AM, Gknrd said:

No worse than anywhere else in the world. The worst debt you can have is credit card and car loans. Here in America I live across from a guy that makes 200K/yr , has four new cars.. A money pit.

Keeping up with the Jones' often leads to bankruptcy.

[ThailandRyan]

On 3/3/2023 at 6:26 AM, nigelforbes said:

Consumer spending as a percentage of GDP is a mathematical calculation.

 

 

Your continually debating what is said by others who believe not everything is upfront and hidden.  You truly do believe that this government posts everything.....many 9f us who have lived here fir quite some time see how things run behind the scenes.  Many houses that are empty are still on the banks lists yet never show up as an NPL.  Neighbor made one payment on his new car and then never paid another penny for 2 more years, yet the bank never came after him until they decided too 3 years later and he was still driving it. At that point he gave them the car back and 50k Thb. The bank then sold it to a vehicle tent sales location.  His wife then bought it with cash for half the price the original loan was for. This loan never hit the NPL list for many years. In the west if your delinquent they come after you quickly to regain the asset...

 

Believe what you want, but it's not just a numbers game as you always spout.

Edited March 5, 2023 by ThailandRyan

[ThailandRyan]

16 minutes ago, Hawaiian said:

Keeping up with the Jones' often leads to bankruptcy.

Yet it takes years here in Thailand to get to that point.....

[zzaa09]

1 hour ago, ThailandRyan said:

Yet it takes years here in Thailand to get to that point.....

Which, obviously, has to be pointed out. 

Personal debt and obsessive need to want is certainly not a common trait here - 

Neither are the ideals of bankruptcy......

[mommysboy]

1 hour ago, Hawaiian said:

Keeping up with the Jones' often leads to bankruptcy.

Not keeping up with the Jones' often does too.

 

 

[mommysboy]

On 3/3/2023 at 6:19 AM, hotchilli said:

The salary is livable... they just live beyond their means.

Depends what you mean by livable. 

 

Certainly in Thailand, it's not just about your own household's finances. It's very difficult not to end up in debt in all honesty.  When a relative (usually more than one) needs 100,000 for medical treatment what can you do? Refusal inevitably leads to even bigger problems.

[BananaStrong]

Buy whatever you want, whenever you want!!!!!!!!!!!!!!!!!!!!

 

First decent job in '94, boss said, "Buy a Rolex so you will have to work for us longer to pay it off!!"  I bought a BMW instead, of course a horrible investment but it got the ladies!!!!  Oh, getting ladies has no value??????????????????  It has INFINITE value!!!!   

 

Later in life had a little (not that little) medical scare......Oh, I'm mortal!!!!    Whose going to tell me I can't spend 100,000 USD if I have it?  nobody........

 

Let's say you have NO money but can get money.   Spend it on your passion!!!  Get you motivated to do something with your life.  Maybe it will help with your confidence, etc....... 

 

YOLO

 

Sometimes it's fun to spend say like 1 million baht just so it will motivate you to make that 1 million back.    

 

Life is short, I don't care ......................................  If it gives you any happiness, that might be enough.  

 

OF COURSE it's a HORRIBLE way to find happiness, and you have to understand that; however, we just finished the worst pandemic in a long time and I'm not telling anyone to not buy what they want.    

 

Let the old people complain and lecture as they count their satangs.........I'll send you a picture of my Bitcoin chain!!!!! lol

 

The real idiots are spending 400,000 USD on "education" or getting married and having to support many people.   or having kids and not stable.  or spending money on alcohol or drugs or flying to Pai to ride down a river....

 

Take a chance, and a chance means money!!!!!        Let other generations deal with your debt!!! lol

[nigelforbes]

1 hour ago, ThailandRyan said:

Your continually debating what is said by others who believe not everything is upfront and hidden.  You truly do believe that this government posts everything.....many 9f us who have lived here fir quite some time see how things run behind the scenes.  Many houses that are empty are still on the banks lists yet never show up as an NPL.  Neighbor made one payment on his new car and then never paid another penny for 2 more years, yet the bank never came after him until they decided too 3 years later and he was still driving it. At that point he gave them the car back and 50k Thb. The bank then sold it to a vehicle tent sales location.  His wife then bought it with cash for half the price the original loan was for. This loan never hit the NPL list for many years. In the west if your delinquent they come after you quickly to regain the asset...

 

Believe what you want, but it's not just a numbers game as you always spout.

Everything you see is anecdotal, nothing more.

 

I've lived here full time for 21 years, how about you?

[mommysboy]

27 minutes ago, BananaStrong said:

Buy whatever you want, whenever you want!!!!!!!!!!!!!!!!!!!!

 

First decent job in '94, boss said, "Buy a Rolex so you will have to work for us longer to pay it off!!"  I bought a BMW instead, of course a horrible investment but it got the ladies!!!!  Oh, getting ladies has no value??????????????????  It has INFINITE value!!!!   

 

Later in life had a little (not that little) medical scare......Oh, I'm mortal!!!!    Whose going to tell me I can't spend 100,000 USD if I have it?  nobody........

 

Let's say you have NO money but can get money.   Spend it on your passion!!!  Get you motivated to do something with your life.  Maybe it will help with your confidence, etc....... 

 

YOLO

 

Sometimes it's fun to spend say like 1 million baht just so it will motivate you to make that 1 million back.    

 

Life is short, I don't care ......................................  If it gives you any happiness, that might be enough.  

 

OF COURSE it's a HORRIBLE way to find happiness, and you have to understand that; however, we just finished the worst pandemic in a long time and I'm not telling anyone to not buy what they want.    

 

Let the old people complain and lecture as they count their satangs.........I'll send you a picture of my Bitcoin chain!!!!! lol

 

The real idiots are spending 400,000 USD on "education" or getting married and having to support many people.   or having kids and not stable.  or spending money on alcohol or drugs or flying to Pai to ride down a river....

 

Take a chance, and a chance means money!!!!!        Let other generations deal with your debt!!! lol

Yes a real life, for someone born without the proverbial silver spoon, inevitably involves spending a great deal of money just to have some form of meaningful existence. It's all very well for keyboard lonewolf boomers to sit there moralizing, but really they are abstracted from reality in Thailand.  

[BananaStrong]

2 hours ago, Hawaiian said:

Keeping up with the Jones' often leads to bankruptcy.

Of course, and the pressure is crazy in the States.   The worst is when the Jones' have parents who send them 100 zillion dollars and they are part of a trust fund and their family owns 10 houses and you are just some normal clown who can't possibly compete with that....you try, you lose, you don't understand the game, and the next thing you know you are living under a bridge wondering how the Jones' bought that new car!!!!!!! lol

[BananaStrong]

1 minute ago, mommysboy said:

Yes a real life, for someone born without the proverbial silver spoon, inevitably involves spending a great deal of money just to have some form of meaningful existence. It's all very well for keyboard lonewolf boomers to sit there moralizing, but really they are abstracted from reality in Thailand.  

I agree, those keyboard lonewolf boomers are the worst!!!!  As a teacher for five-years, I've seen poverty like you couldn't possibly imagine!!!!  I had dinner with a governor, wealthy beyond imagination (not really, but let's have some fun here).   

 

Why moralize at all!!!! I gotta go, I'm in the fields of Thailand giving sound financial advice and I have a work permit!!!!!

 

My existence is worthy of 10 zillion likes!!!!!!!!    I am helping everyone here!!!!  If you are still reading, I am helping!!!!  Thanks for reading, now stop reading and get out there and help!!!!!!!  lol

[ThailandRyan]

48 minutes ago, nigelforbes said:

Everything you see is anecdotal, nothing more.

 

I've lived here full time for 21 years, how about you?

So reality is Anecdotal.  I was born here to US military personnel, raised here until I was 5 then back to the US, but we would come back yearly.  When I was in the military I came yearly for training in the 80's, then while working on loan to the Department of State I lived here in 98 and 99.  I moved here semi permanently in 2005, and then permanently in 2009.  Not going to total up the actual months and years for you.  I was married to a Thai woman, now my ex and we have a now 15 year old daughter.  My ex-wifes father was the Poo Yai Baan of a village in Udon Thani, and my now ex brother in-law is a Pol Lt. Col in the RTP.  My ex-father in law became the Kamnan, and his family members (Uncles) were Generals in the Military.  I have been around long enough to know that what you see is only the top small percent while everything else is hidden in murkiness.  Time to stop playing games with you as you seem to believe you know the whole story, but in reality you see the black and white of what this government prints.  Adios enjoy your Sunday and tomorrows holiday.

Edited March 5, 2023 by ThailandRyan

[nigelforbes]

33 minutes ago, ThailandRyan said:

So reality is Anecdotal.  I was born here to US military personnel, raised here until I was 5 then back to the US, but we would come back yearly.  When I was in the military I came yearly for training in the 80's, then while working on loan to the Department of State I lived here in 98 and 99.  I moved here semi permanently in 2005, and then permanently in 2009.  Not going to total up the actual months and years for you.  I was married to a Thai woman, now my ex and we have a now 15 year old daughter.  My ex-wifes father was the Poo Yai Baan of a village in Udon Thani, and my now ex brother in-law is a Pol Lt. Col in the RTP.  My ex-father in law became the Kamnan, and his family members (Uncles) were Generals in the Military.  I have been around long enough to know that what you see is only the top small percent while everything else is hidden in murkiness.  Time to stop playing games with you as you seem to believe you know the whole story, but in reality you see the black and white of what this government prints.  Adios enjoy your Sunday and tomorrows holiday.

So you've lived here full time since 2009, why not just say so!

 

I have no interest in the social impact of debt, only on the economics of it all, I leave it to others to comment on the former what do know is the things I have said, percentage debt is a mathematical formula, and, anybody's observations on debt can only be anecdotal.

 

We're on holiday on your neck og the woods,staying at kundala, stop by and we can debate Thai economics.