This is how Capitalism works. Advertising and easy credit is designed to entrap and enslave you to  a life of craving, debt, work and stress. And you wonder why the Thai smile has disappeared!

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.

Used car sales in Thailand are scum who pray on people who can't get credit to buy a new car or people desperate for money selling their car. In 2019 when I was leaving Thailand I took my 4yr old 4 x 4 everest to several dealers and even though they were selling 2 WD Everest for a million baht that was a year older than my Everest, they offered me 50,000baht (thinking desperate to sell). I sold private and got 800,000baht. 

First problem = low income +  lack of decent social security.
Second problem = Thai people NOT living within their means and buying new items that they don't need. For example, the latest iphones ipads , & brand new cars & motrobikes that they don't really need. 

2 hours ago, IamNoone88 said:

The unofficial loan market fills a void - the lending gap - from the banks when individuals do not qualify for a loan. Generally fast and expensive they offer instant gratification for those needing quick money. The banks maybe conservative but the lending requirements are not easy to fulfill. Thus the trap is high cost of borrowing outside of the banking system.

Must disagree about it not being easy to get a loan or credit card for a Thai. My wife who had no job got a credit card because married to me while I would have to deposit say 50,000 baht to get a 50,000 baht credit card so I would be borrowing my money and paying interest for the pleasure. Obviously I said NO!

7 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.

many are repos but some are sold privately

The buyer is expected to carry on the finance payments in many cases

7 hours ago, 2baht said:

Well......................let's "borrow" some more! 

Borrow some more to pay off the debt. If governments can do it why can't I!

Time to boost and stimulate domestic tourism and consumption:  That is basically what Thai economic policy has been for the past 5 years. 

 

I guess this news shows it has been fantastically successful. Well done to the caretaker government. 

A lot of criticism for Thai borrowing practices and their 90.6% household debt to GDP and I wonder how many are from the UK (100.1%) or Australia (117%). Clearly experts in the topic...

2 hours ago, 2baht said:

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

But, but! I was given change from the purchase I made. Are you suggesting I demand more!?

UK same same same but different.

Everyone what's everything now !

When I werr a lad you saved up for something and looked after it .

Now credit easy peasy lemon squeezy !

Brand new car on the driveway but no furniture in the house .

Or massive TV on the wall and little Johnny doesn't have a proper breakfast .

 

Keep up with the Jones on twatter or X as it is now known and face ache.

Funny old world ????

 

10 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.

That's because Thais who ain't got a pot to p#ss in won't buy anything second hand. New cars with red plates parked alongside <deleted> hole houses you wouldn't keep pigs in. 

7 hours ago, mfd101 said:

Only the lending institutions (ie banks) can correct the situation over time by tightening their lending rules.

Not ONLY - whoever is artificially keeping the baht strong is also at fault. a baht at 40 USD or more would bring more tourists and help exports. It's the economy stupid. Oh! a little practical budgeting education would be helpful- but that's true all over the world. And the small middle class is also a problem.

24 minutes ago, mrfill said:

A lot of criticism for Thai borrowing practices and their 90.6% household debt to GDP and I wonder how many are from the UK (100.1%) or Australia (117%). Clearly experts in the topic...

If the criticism can possibly stop Thailand  from achieving the same heights as the UK and Australia, then that criticism is well spoken. Is it not? 

Not wondering since I have seen that you can buy airline tickets or do hotel bookings now on installment. This must be the paramount of credit giving to people who actually can't afford it

1 hour ago, ThailandRyan said:

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.

Yeah, I offloaded my gambling nutcase EX to an older richer farang.

 

Glad she's in the rear mirror.

8 hours ago, webfact said:

to include student loans, agricultural cooperative loans, housing loans and microfinance offered by both existing banks and non-banks.

and gambling loans?????

They kept interest rates far too low, while it spurred economic growth, the debt levels surged. Despite very low unemployment rate the BoT should have kept interest rates a bit higher.

 

The problem again, was that the Baht was too strong.

 

 

1 hour 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.

 

I cannot tell you that as I don't think I know many Thais with their own credit cards issued in Thailand.

 

Most of the Thais I do know use a CC in their husbands name. and it is invariably a western CC.

6 hours ago, ikke1959 said:

They want to be rich, and live like rich already, but are too lazy to start working. Try to find somebody for whatever and but the payment is always too low or the work is too less to do it. They prefer to do nothing and borrow from family and friends than earn a bit. They only want to have big money..There is start for the solution. 

I think many comments here are a little unfair, stereotyped Thais, lazy, no forward thinking etc. Many have no other option than to borrow for things like school activities, school uniforms, fees, learning materials etc. (also iphones, required at my 16 year old's school) especially as farmers are relying on the coming harvest, they've invested in their crops but haven't received any money yet. Also many small employers, garages, shops, builders, don't even pay the last minimum wage let alone the new one. I know enough Thais with two jobs not just one. I certainly don't find them lazy, the builders at my local temple are erecting buildings that are works of art and work enthusiastically in all weathers with no safety equipment even though, as the foreman told me, the pay isn't that good, their midday meal is the monks left overs.

Europeans with guaranteed wages, bonuses, holiday money, sick pay, pensions etc. enjoy benefits that a Thai can only dream of and due to low state pensions often have to support their parents as well as their own children. Many of you have no idea what these people go through because to save face they don't grumble, at least not to a stranger, they are an admirable proud, stoic people, corruption/rip offs among the little folk here is understandable.

Unlike the UK, where every 7th person is on the poverty line and in debt, there are no food banks or charitable organizations (that I know of anyway) to help out. The system is wrong, not the people.

2 hours ago, Toby1947 said:

That's because Thais who ain't got a pot to p#ss in won't buy anything second hand. New cars with red plates parked alongside <deleted> hole houses you wouldn't keep pigs in. 

To impress the Mia Noi you undersatand !

5 minutes ago, racket said:

Despite very low unemployment rate the BoT should have kept interest rates a bit higher.

As anyone knows who bothers to visit an Isaan village any day of the week, the 1% official unemployment rate is entirely fictitious, being based on those few who bother to enroll on the government's list. Much of Isaan survives in the informal workforce, doing odd jobs around the place for minimal or sub-minimal wage or just a mid-day meal. (I know because I employ them & pay them a decent day's wage as well as a meal.)

1 hour ago, Kaopad999 said:

First problem = low income +  lack of decent social security.
Second problem = Thai people NOT living within their means and buying new items that they don't need. For example, the latest iphones ipads , & brand new cars & motrobikes that they don't really need. 

Another problem is online gambling and underground lottery 

2 hours ago, Toby1947 said:

That's because Thais who ain't got a pot to p#ss in won't buy anything second hand. New cars with red plates parked alongside <deleted> hole houses you wouldn't keep pigs in. 

Yes, I've also seen families living in tin-shacks, while outside a brand-new Merc or BMW was parked... People clearly have different priorities in this country.

7 minutes ago, FruitPudding said:

Another problem is online gambling and underground lottery 

Not to mention the regular lottery. On or after pay-day people lining up to buy lottery tickets rather than food, or a new shirt, both of which some of them seem to be more in need of than lottery tickets...

I know you may not agree with me but it really pisses me off to see this..I've seen this in Panama as well, a poorer country than Thailand. They constantly market expensive items on TV, Radio,etc knowing 98% of the people can't afford it. I was with my girlfriend in Panama watching all these commercials and we'd look at each other and shake our heads. We'd drive by car lots with tons of repo's in the lot. Panama was the first country I lived in that had a very small % of people that had ANY money. They even had Lada dealers, people couldn't even afford those. 

 

The vulture capitalism is bad enough in the west..actually it's HORRIBLE and should be criminalized. But in my opinion, in Thailand it's a crime against humanity.  

Current debt problems seem to be a worldwide phenomenon.

Everything was fine until interest rates began to rise / normalise (recently it was possible to continually roll over debt onto new near 0% credit cards).

 

Due to recency bias MOST expected near zero interest rates to go on forever.

 

The system relies on ever expanding debt/credit - that's why they never taught you about household finances or debt in school: The entire system relies on dumb debt slaves / consumers - it's better for the system if you're not clued up.

 

Will be interesting to see if the baht can stay at current levels 

 

20 minutes ago, mfd101 said:

As anyone knows who bothers to visit an Isaan village any day of the week, the 1% official unemployment rate is entirely fictitious (...)

No need to visit an Isaan village. Plenty of people 'listening to sounds, or watching this and that all day' in Bangkok too...

1 hour ago, mrfill said:

A lot of criticism for Thai borrowing practices and their 90.6% household debt to GDP and I wonder how many are from the UK (100.1%) or Australia (117%). Clearly experts in the topic...

Compare salaries, income and assets,.

8 hours ago, Furioso said:

Until last year, I had not been to Thailand since 2010. Now that I'm back I can see the huge difference,

 

Thai's really seem much, much unhappier, it's obvious they are struggling mightily. 

8 years of Junta did not make them happy for sure

There is nothing better than being debt free and having funds in the bank, but that takes a lot of control.

 

1, No credit cards

 

2, Pay off your mortgage as quick as you can while still enjoying your life with 2 jobs ????

 

3. Invest in both real estate and the stock market long term

 

Reach a reasonable retirement age of say 55, then live, that or remain a slave to the banks and government tax collectors, i.e. unless your fortunate enough to receive an inheritance.