Loan Sharks And Thai Household Debt

[BigJohnnyBKK]

Yes, the group of people resorting to consorting with farang has a lot of overlap with those resorting to loan sharks, and yes often for the exact same reasons.

As to the more general question as to levels of household debt and the sustainability of such in Thailand as opposed to other countries in the region, I not only am not qualified to judge but suspect that there is little available reliable data on the topic anywhere. Why on earth would anyone think here was the place to try to gather it?

[chiangmaikelly]

Yes, the group of people resorting to consorting with farang has a lot of overlap with those resorting to loan sharks, and yes often for the exact same reasons.

As to the more general question as to levels of household debt and the sustainability of such in Thailand as opposed to other countries in the region, I not only am not qualified to judge but suspect that there is little available reliable data on the topic anywhere. Why on earth would anyone think here was the place to try to gather it?

There are millions of dollars being made by people who swear they know about human trafficking in Thailand. If they can gather information on such an illegal and taboo subject as that; loan sharking stats should be a breeze. Or you can just make up a random phrase like, “71% of the surveyed households reported having outstanding loans while 70% of the loans were taken out during the first half of 2009.” and see what google has to say.

[bunta71]

If you can't pay the loan back - you can't pay it back. Illegal sharks are wrong for loaning the cash in the first place, that's the risk they take. If they threaten you, go to the coppers. If the cops can't or won't help you and the sharks get physical, be prepared to defend yourself against them.

What do you do when the loan shark is the copper? No, did I say that? I am not going to get another good deal on a motorcycle that was confiscated.

Yeah that one cracked me up also. I have paid off two of these debts for friends through the years. The last person had been beaten and threatened with worse. Both of the sharks were....yep! you guessed it.

[MAJIC]

these low life scum

Why do you call them that? Your friend willingly went to this "loan shark" to borrow money, fully aware of the conditions.

Replace the word willingly for desperately,....that would be much nearer to the the truth!

[MAJIC]

Its because they have no choice

your talking about people in villages i presume

Some of them have 10 - 20 rai or more & can make a living pending on crop success

Then theres the ones who had but due to failures had to sell of slowly till only the house block left HENCE the only thing they have left will be morgaged for a car so they can go after that allusive big money making out of the ute business - not.

So when thats not making money the need for the hock shops & gold brokers are required ALL BY CHOICE & certainly not to a foriegners likeing

Everything here is a comodity to them (not saying all) including your house & the nice jewelry / motorbike ect

BLOOD IS THICKER THAN WATER

PS . Once read an article on hear as to what number are u on the list (regularly stir the wife up)

need a big TV, need a new mobile phone, need a new motorbike, need a new car, everything better and bigger than the neighbor and than bankrupt.....

.....and don't forget the gambling with borrowed money. I know several who have lost their motorbikes, cars, land etc. just to try to win back the money they've lost on gambling.

For some reason, they can't grasp the first rule of gambling: Don't bet more money than you can afford to lose.

Yes, this is sad but true. I have a British friend whose wife let the car get reposed, sold the motorcycle, took out a loan on the house he bought her and didn't pay her sons school fees for 4 years. It's all gone, everything he had bought to try to give this Thai woman a better life. The casinos in Poi Pet were more important to her than stability and security for her sons.

Easy come, Easy go, what you never worked for is quite painless to lose,only the Husband suffers.

[nong38]

In the UK there are many people who cannot budget for a month and have to borrow with large interest payments for that last few days till the pay rolls into the bank, they cant seem to realize that one austere month wouls solve there problems, they keep repeating the sme mistakes, just like here!

I know people who make a nice little earner every month, either you sort out your problems or you pay, one way or another.

[jacktrip]

if you cant pay you run and take your chances. thats the hard reality.

[drdredd2012]

Not to beat a dead horse but what about the farang community has anyone used one of these loan sharks?

[jcw]

People offer us 20% indicating that is the going rate, that's per month. We don't lend money, full stop. I know of others paying 12% per month on a 120k baht loan that was required for a bribe for the BIB. A nephew was a bad boy apparently. They never get the principle down.

[yourauntbob]

These loan sharks can be nice old rich ladies. It not that simple. The problem is that the Thai state do not protect their people against this practice.

Its not that people are not protected. Its that as with many things here, people ignore the law. To legally lend in Thailand you need a banking license, and if you go through a proper bank there are regulations and restrictions against "predatory lending." The laws do not allow such loans so people go to loan sharks and other "scum" to get loans that banks are not allowed to give out. You cant have it both ways. Either banks should be allowed to get compensated for large risks, or people should not be able to get the loan. Dont blame the government for people skirting the law.

[BEVUP]

Been some interesting responses, thank you one and all. I found out why he went to a loan shark .... he apparently was cleaned up by a taxi on his way to work and suffered some serious head injuries....medical expenses I suspect.

'Such is life'.

Ned Kelly

must have some serious head injuries to be even able to go to the loan shark or the thought of it. not sure what advice to get him out of the spiral debt due to medical fees but maybe wearing a proper helmet, proper insurance and riding defensively would help.

I thought that hospital bills was 30 Baht for a Thai.

True for government hospitals, but some Thais are in fear of the treatment at government hospitals when needing trauma care for the things such as head injuries. As did a family member whose family borrowed money for treatment at a better equipped hospital.

Not true for here in Korat

I was willing to be at St Marys or BKK but had to go to Government hospital since they had the intensive care unit or emergency care for newborns

And yes i have heard the doctors do swap around hospitals but icant see why they are any better as they are not liable for insurance malpractice

maybe they can afford to do it right as they are taking their time on recieving higher payment