Thais are sinking deeply into debt

[2baht]

1 minute ago, hotchilli said:

Get off your backsides, get onto the streets and demand change...

....................but it's really hot at the moment and there could be rain!

[Jackbenimble]

3 hours ago, worgeordie said:

It's not just Thailand , it seems the whole World is mired in debt,

Cash used to be king , now it seems to be going out of fashion,

let them that's owed ...worry , it's an I want it and I want it now

society , every time a new iPhone comes out , up goes the debt.

 

The low interest rates of the last 10 + years did not help,they

must have thought it would go on forever ,now the rates have

(not so much here ) gone up ,people are finding their mortgages

go through the roof ,

 

regards worgeordie

so true...........i still clealry recall paying cash for car hire and all manner of things. I also recall being asked by the same companies "can you pay by card?" and then being told paying by card was the only payment method accepted. 

The problem here in Thailand is the whole society lives for today.......lending to people like that by definition means they haven't planned how (or even if) they can make the repayments in the future.

The banks are their own worst enemy as well as the enemy of the average Thai but what other options do they have? Lend and be damned I suppose...........responsible lending surely isn't the answer..............at least not without educating the masses (which isn't going to happen anyrime soon) 

[madmitch]

Borrowing from loan sharks, friends and family hardly gets a mention in the article but it's a major problem. They borrow with no idea how they will repay, then borrow from someone else to repay or simply don't bother. 

[Bangkok Barry]

When Face is the most important thing in Thai society, and with many Thais having the mental age of children (the two go hand in hand) then you have a recipe for financial disaster. What puzzles me is why banks lend to people who clearly have no means to pay it off.

 

One day the bubble will burst and the debt will be called in, in a similar way to what set off the Asian financial crisis in 1997. Then, BCC lent too many unsecured loans and crashed, and the Baht fell through the floor. Many of us will be hoping for a repeat. And no, I have no sympathy for the locals who lived beyond their means and will suffer as a result.

[ThailandRyan]

6 minutes ago, hotchilli said:

Get off your backsides, get onto the streets and demand change...

Satang, 1 baht or 2 baht coins?  Begging can not be financially rewarding or can it be?

[Skeptic7]

4 hours ago, connda said:

It should read, "Predatory Thai lending institutions prey on Thai citizenry."

Credit should not legally be extended to those who are going to be unable to repay.  This is what non-existence regulators are for - to stop institutional predation by banks, corporations, and financial institutions.

 

Agreed. And could also read...

 

Predatory Thailand exploits and preys on the proletariat by not providing policies for gainful employment and wages. 

 

No true middle class here. 

[hotchilli]

6 minutes ago, 2baht said:

....................but it's really hot at the moment and there could be rain!

Summed up nicely.

[metisdead]

A troll post has been removed.

[wealthychef]

Uh oh... this means the IMF or World Bank are going to smell blood in the water.  God help Thailand if they ask for any financial "help" from the West.  Better off letting China "rescue" you. 

[billd766]

4 hours ago, Lacessit said:

What I don't understand is how used car values can hold up very well under obvious oversupply. Every car yard I see in CM or CR is full of unsold vehicles.

The owners of those car yards must get their finance from somewhere to hold such a large stock of vehicles.

 

2 hours ago, Kwasaki said:

To get a Thai bank credit card I thought Thais had to have money in the bank to cover the use of the credit card.

AFAIK that applies for farangs only. You can have as big a credit limit as the amount of money you deposit in a separate bank account tied to the credit card.

 

The money you spend on the credit card is repaid from that account and if you don't replenish it your credit is reduced by the amount you spend.

 

Another small problem, especially for the elders among us, is that when you die the credit card is frozen for 3 or 6 months before your survivor can reclaim the balance of the account.

 

So here in Thailand, a credit card for farangs is not the same as in the west. You will be using your own money and not that of the CC issuer.

[EvetsKram]

There are 28000 memb

[AhFarangJa]

4 hours ago, 2baht said:

There was a time when people robbed banks, now, banks rob people!

They always have, since time immemorial...

[EVENKEEL]

5 hours ago, bob smith said:

....'thats the way, uh huh uh huh, they like it, uh huh uh huh.'

 

they see nothing wrong going into debt to have the latest iphone or chinese EV.

 

who cares if they go bankrupt when their friends think they are 'cool' and they can post all about it on insta.

 

TIT.

Your avatar gets more disturbing every time. Not as bad as Bogs though.

[AhFarangJa]

At least they may have a crumb of comfort to know that over the last eight years or so a certain number of their leaders have salted away billions of baht for their happy retirement, while at the same time managing to do nothing but plunge the population into poverty.

[Lacessit]

21 minutes ago, billd766 said:

The owners of those car yards must get their finance from somewhere to hold such a large stock of vehicles.

 

AFAIK that applies for farangs only. You can have as big a credit limit as the amount of money you deposit in a separate bank account tied to the credit card.

 

The money you spend on the credit card is repaid from that account and if you don't replenish it your credit is reduced by the amount you spend.

 

Another small problem, especially for the elders among us, is that when you die the credit card is frozen for 3 or 6 months before your survivor can reclaim the balance of the account.

 

So here in Thailand, a credit card for farangs is not the same as in the west. You will be using your own money and not that of the CC issuer.

Effectively, what you are saying is the cards issued to farangs are really debit cards. Which are common in Western countries.

I had an Amex card once, and got tired of tracking what I was doing so I could claim rewards, and avoid interest charges. At least with a debit card, I was spending my own money, and not someone else's that I would have to repay.

[Hugh Jarse]

4 hours ago, ThailandRyan said:

Why were they given cards and loans if they did not have the ability to repay said cards and loans. Shameful....

When a foreigner gets a credit card they must deposit an amount equal to their credit card limit. Why don’t banks do likewise with their Thai customers?

[SpanishExpat]

Sad but that’s the Thai mindset! It starts to buy the newest iPhone with downpayments, loosing the overview of credit card spendings and ends with an overpriced car/house.

 

 

[peter zwart]

The solution is simple: stop the Visa nonsense, give the falang easy access and threat them as royalties. They are in most cases stupid enough to clear the debt. Problem solved.

[billd766]

17 minutes ago, Lacessit said:

Effectively, what you are saying is the cards issued to farangs are really debit cards. Which are common in Western countries.

I had an Amex card once, and got tired of tracking what I was doing so I could claim rewards, and avoid interest charges. At least with a debit card, I was spending my own money, and not someone else's that I would have to repay.

AFAICS you are using your own money to finance your own credit. A CC does have its advantages but in Thailand I think it is a little different.

 

You will be using your own money and I suppose that is similar to a debit card or simply cash. It means that outside of Thailand the CC should be covered by Visa or Mastercard as the supplier already has access to your funds.

 

I have no idea if you have to pay charges or not.

 

I got rid of all my CC years ago and simply us a KBank debit card or cash. That way if I don't have the funds available I either save for it or go without.

[Purdey]

Credit card companies can cancel credit and debit cards, but they won't. What happens if they keep allowing people to use the cards who can't afford to repay? Are they looking at the interest rates they charge and think they can make a bundle? Not if people default and they get zero.

Edited July 24, 2023 by Purdey

[spidermike007]

They kept the nation closed off for far too long, and decimated tourism. Then they partially re-opened, with draconian restrictions. It could take years for a recovery, that will likely never return to what it was before. So, if you want to put the blame in the place it belongs, blame Prayuth and Prawit. They are the architects of the downfall of Thailand, the increased suicides, homelessness, crime, unemployment, and unhappiness of the people. Let us call it the Prayuth Decimation.

In regard to tourism, the very things people were coming here to enjoy, have been diminished. Less nightlife, less color (due to the pasteurization and homogenization of the place), fewer resorts and restaurants, and alot of visible decimation of the economy. The fake puritan goons continue to homogenize, pasteurize and eliminate what little culture, character, street life, entertainment and nightlife that exists here. This is not smart. This is fake puritanism. This is hypocrisy which is operating at the zenith of human foolishness. A total lack of understanding of human nature, and a complete inability to see what it truly appealing about this place. 

Thailand still has not figured out that it needs the support of the world 30X more than the world needs Thailand. 

[Kwasaki]

1 hour ago, billd766 said:

The owners of those car yards must get their finance from somewhere to hold such a large stock of vehicles.

 

AFAIK that applies for farangs only. You can have as big a credit limit as the amount of money you deposit in a separate bank account tied to the credit card.

 

The money you spend on the credit card is repaid from that account and if you don't replenish it your credit is reduced by the amount you spend.

 

Another small problem, especially for the elders among us, is that when you die the credit card is frozen for 3 or 6 months before your survivor can reclaim the balance of the account.

 

So here in Thailand, a credit card for farangs is not the same as in the west. You will be using your own money and not that of the CC issuer.

Thanks didn't know it only applies to falangies.

Surely Thais have to have some kind of collateral to be given Credit cards.

 

Edited July 24, 2023 by Kwasaki

[khunpa]

I am not surprised. Most Thais are “brain damaged” when it comes to handling their finances and they have a way of seeing a loan as a gift.

[DjSilver]

We who have lived in Thailand are not surprised. We have seen that Thai people have a hard time knowing basic economics and mostly spend more than they earn. Instead of maybe saving 20-30 % of their salary, they choose to buy and travel to keep up the luxury living.

 

As an example, I will not count the lowest income like 10-12k baht/month, but the more average salary of those with a university degree at 25-30k baht/month.

 

Rent maybe 8k/month, car maybe 5k/month, food (200 baht × 30), 6k baht/month, credit cards for entertainment 5-10k baht/month, clothes 5-10k baht/month, other expenses 5-10k baht/month.

 

They surly live over their standards. Everyone knows that Thai people don't have much money, so stop living like you do. Not even European that has more money live and spend this recklessly.

[ThailandRyan]

10 minutes ago, Kwasaki said:

Thanks didn't know it only applies to falangies.

Surely Thais have to have some kind of collateral to be given Credit cards.

 

Absolutely none needed. Ex wife picked up 3 cards a day quickly maxed them out. Never knew until the divorce how much she owed. Glad her new millionaire paid them off for her. Always wondered where all the new clothes from H&M and Zara came from. She had no job.

[EVENKEEL]

I lived alot of my life saving, the thought of spending 10% of my income on lunch was not happening. But here even a 50 thb meal is alot if the day rate is 500 thb. I don't get it.

[StayinThailand2much]

7 hours ago, webfact said:

Thai people are burdened with high household debt. 

I don't see why this should be a problem. Reportedly, Thais are as optimistic about (their) economic situation as they haven't been for more than a year, 'everyone' has a job (supposedly an unemployment rate of only 1%), news media report record rice- and durian exports, as well as record tourist numbers every other day, and banks keep loaning money to everyone and their dog, no matter whether people are already over their head in debt, or not... So, why would this be a concern?*

 

 

*Beware: sarcasm!

Edited July 24, 2023 by StayinThailand2much

[Moti24]

6 hours ago, Lacessit said:

What I don't understand is how used car values can hold up very well under obvious oversupply. Every car yard I see in CM or CR is full of unsold vehicles.

Yes, second hand vehicles are very expensive here.  The reason is that it's so easy for Thais to get a loan, dealers know they will eventually sell the over-priced cars.  Most Thais don't see the extra 70/80K, they just see the extra 1K per month.

 

The winners - Finance companies and car dealers.  The likes of you and I have to pay the vastly inflated prices or do without.  

[NemoH]

Welcome to the land where foreigners can never get credit or loans but locals are lavished with super high loans which they have zero plans on repayment. 
where the market is delusional and feed itself on materialism which they cannot afford. Where banks seldom take legal action against loan or credit defaulters who merely get black listed enduring 7 years of no borrowing and resurrected as a good credit thereafter even without paying a single cent. 
All the above made possible by a eternally booming property market that does not cater to market demand and supply and whose only valuation is annual upward value of 10-20% each year regardless of whether there is any buyer or lessor or any humans ever interested in paying for the property.. and each condo have hundreds of sellers advertising for different properties at the same per square metre price regardless of floor, age of property or even the quality of the property.. which means an old shed has the same value as their next door condo… what a clown world call Thailand … whom we all love ????????

[jcmj]

Doesn’t help that they give cash incentives to buy new cars, or at least they did. I’m sure that money was spent quickly and the loan payments were put on the back burner. That is one of the reasons why there are so many cars for resale and very few takers. Plus they seem to want the latest and greatest to show face.