Thai People Spending Beyond Their Means: Report

[Pormax]

Back on topic.

I would say that the report is underestimating or hiding the amount of the population that are in debt.

My reason for that is in my village of less than 150 houses I would say from what my wife has been telling me, that 70% of them are in debt now. Will pay back when sell their rice but 2/3 months later will have no money then will borrow again and not just from the banks but other people who charge between 3 & 5% a month. I would guess that there are many rural villages like this one.

[anon210]

We are talking here about "official" debt contracted from financial institutions. It is obvious that the informal loans taken between individuals or with loan sharks are not represented herein. The real issue for the economy is when this "official" debt becomes unpaid and triggers a series of defaults within the economy at large.

[12DrinkMore]

Consumerism always ends up in despair - and I believe Westerners have learned that a long while ago. And unlike many foreigners, I do not see Buddhism as providing an answer to this, as most Thais seem unaware of the effort of renunciation that goes with that life ethic. Renunciation and giving up desires is the first step on being contented with your life... How is that possible in a perpetual "keeping up with the Jones" society, and one where even Buddhism is become an instrument of consumption (look at the ready-made baskets of "gift" to monks in any supermarket)?

In short, Thailand is fast coming to face its own contradictions.

Dunno about the religious stuff there.

But the West certainly has not learned the lesson. The governments are trying to force even more debt down the throats of the "I wanna that toy" and at the same time taxing them up to the eyebrows.

Economies run on debt. It is the system we have.

The creation of the sovereign currency has been passed onto the banks in the name of capitalism. And the banks will create some 97% of all money in existence all by issuing interest bearing debt out of nothing.

Marvelous.

But you shouldn't blame the people. It is the XXXX bankers lining their own pockets risk free as the governments will bail the XXXXXXXX out, time and time again.

Edited November 27, 2012 by metisdead

[bkk_mike]

They introduce a scheme where you get the tax back on new cars (for a limited period only), so people that were maybe going to buy a car in a year or two will buy one now, or that might have bought a used one, will stretch to buying a new one.

Add in that last year, a statistically significant number of people lost their jobs during the flooding (and even if they regained their job or got another one, they probably lost a few months income), and that personal loans are going to be the ones that you don't pay when you have a choice between paying your mortgage/rent or your credit card/car loan.

Then they complain that the proportion of non-performing loans that are personal loans is increasing. (How can it be a surprise to anyone?)

[metisdead]

A post containing inappropriate language has been removed and another post has been edited to remove profanities.

[Sunderland]

The girlfriend is a prime example she has a salary of 20,000Baht a month. The 12,000 I have being giving her is now not enough. She cannot pay her bank loan, because she does not take it from the 12,000Baht. She did not pay her electric bill 1,700 Baht, they took the meter. She yelled at me for not reminding her when the bill normally came and complains she has to go town to pay it 30 kms. oh! but now she can pay by bank transfer. And are you going to pay for this and this also. Plus the normal things I buy every month another few thousand Baht.

The 12,000 that I give her would pay all her bills every month if she took that money and paid them instead of just throwing it in her purse and then having nothing at the end of the month. She thinks money is love and who will give her more is giving her love. So she wants a man now with unlimited income to come and support her.... any offers out there....

I'd dump her quicker than a steaming turd.

[lizardtongue]

Off the top of my head didn't they 'push' purchasing new vehicles by offering 100,000Bt back after 2 years (only available to Thai's), on the understanding that it was brought on credit? If so that may well account for the increase in spending within the car sector?

Working hours being cut was always on the cards once the minimum wage was introduced. The figures for depression are probably no worse than those of the West. It is never going to be a problem for under aged kids to buy cigarettes, simply get an older friend to buy them!

The disturbing figure is the 36.6% of households that experience domestic violence although that is not surprising after reading that the Bangkok 'domestic violence help line' receives 3 calls an hour!

The suggested statistics regarding first time drug dealers being arrested are also not surprising, again I would suggest this figure could be applied to a lot of Western countries?

20 something years ago my outlaws in-laws borrowed 30,000Bt against their Chanoot, guess what.............they still owe 20,000 Bt !!

Two years ago a friends girlfriend borrowed 3,000 Bt from a family member she has been paying 300 Bt a month 'interest' she could easily afford to pay back the 'principal' but when confronted with the obvious by her boyfriend she responded with, "Why should I give 3,000 back when I can just give 300"?

This is the mentality you are dealing with................NO CHANCE of things changing in the near future?

[ratcatcher]

It's not surprising the way the average Thai handles money and views debt and responsibilities.

They see the government spending billions on this and billions on that and figure they can do the same. In fact many are encouraged by the credit card companies telling them how easy it is to buy that new truck or wide screen TV.

The rice scheme(scam) has allowed many rural families to acquire new vehicles, which, when the economy slumps as I believe it will, they will be hard pressed to pay for.

However I don't blame them, they see how the westerner lives and want the same.

It's great while the party lasts and the money comes in. Then there's job loss or lowered income and everything goes TITs up. Crying time.

[Chads]

The girlfriend is a prime example she has a salary of 20,000Baht a month. The 12,000 I have being giving her is now not enough. She cannot pay her bank loan, because she does not take it from the 12,000Baht. She did not pay her electric bill 1,700 Baht, they took the meter. She yelled at me for not reminding her when the bill normally came and complains she has to go town to pay it 30 kms. oh! but now she can pay by bank transfer. And are you going to pay for this and this also. Plus the normal things I buy every month another few thousand Baht.

The 12,000 that I give her would pay all her bills every month if she took that money and paid them instead of just throwing it in her purse and then having nothing at the end of the month. She thinks money is love and who will give her more is giving her love. So she wants a man now with unlimited income to come and support her.... any offers out there....

Hope you've already left her, or are planning to leave.

[sandrabbit]

here in Rayong the price of land on the seafront is going through the roof so I see so many red plates a month, it looks way wealthier than the UK at the moment. it is going to bite them in the arse big time, all the Bangkok number plates we see down here seem to be new as well. they might as well let us own the land because it will be the financial institutions owning it soon and as I live here I would take care of it for future generations of Thai/Anglo crosses.

[DeepInTheForest]

Well, this seems to confirm that Thailand is not the "Land of Smiles" but the "Land of Tears".

For all the hypocrisy and false appearances and "saving face" culture cannot hide the crisis coming up when you are left with yourself to face who you really are.

Consumerism always ends up in despair - and I believe Westerners have learned that a long while ago. And unlike many foreigners, I do not see Buddhism as providing an answer to this, as most Thais seem unaware of the effort of renunciation that goes with that life ethic. Renunciation and giving up desires is the first step on being contented with your life... How is that possible in a perpetual "keeping up with the Jones" society, and one where even Buddhism is become an instrument of consumption (look at the ready-made baskets of "gift" to monks in any supermarket)?

In short, Thailand is fast coming to face its own contradictions.

Consumerism always ends up in despair - and I believe Westerners have learned that a long while ago.

Are you serious?

[Sing_Sling]

The girlfriend is a prime example she has a salary of 20,000Baht a month. The 12,000 I have being giving her is now not enough. She cannot pay her bank loan, because she does not take it from the 12,000Baht. She did not pay her electric bill 1,700 Baht, they took the meter. She yelled at me for not reminding her when the bill normally came and complains she has to go town to pay it 30 kms. oh! but now she can pay by bank transfer. And are you going to pay for this and this also. Plus the normal things I buy every month another few thousand Baht.

The 12,000 that I give her would pay all her bills every month if she took that money and paid them instead of just throwing it in her purse and then having nothing at the end of the month. She thinks money is love and who will give her more is giving her love. So she wants a man now with unlimited income to come and support her.... any offers out there....

I'd dump her quicker than a steaming turd.

I wouldn't pick up a steaming turd in the first place

Seriously, is that the kind of relationship that some people are in? Hideous, simply unbelievable. Your girlfriend has an income yet you give her more money . . . why would you give your partner money on top of what she earns?

Well, you get what you deserve

[Bagwan]

I've been led to believe that 'taking care of bills' means 'keeping them in a safe place'

For many Thai ladies taking care of bills means taking care of Bill's money.

I've recently disengaged myself with an association with an American guy getting on in years and enduring physical handicaps that accompany getting older. He was introduced to what he thought was 'a looker' - an opinion that I didn't share - and she kicked off on Day 1 by stating that she couldn't be with him unless he gave her 250,000 baht that she needed to settle a debt. He has since then given her the money to pay a fine after she was sued for defamation, paid for her to take a Master's degree at a BKK university, financed a house in Mukdahan and gets through 2 million baht of his money every year. She has never worked. He has never stopped complaining about her and says that she is with him for about one day in ten. How masochistic, or insane, can you get?

It has been impressed on my Thai family that if they borrow money from any sourse then they are on their own. I will be their banker and decide whether to assist or not, the prime factor being whether I consider they have a need or merely want. Some of my financial assistance has been in the form of a gift, but in cases when I have loaned, the family knows that no further loans will be made to anybody until at least 50% of the loan has been repaid and that no further advances made to the lender until all the sum has been repaid. I am pleasantly surprised how self sufficient they have become.

[billd766]

The girlfriend is a prime example she has a salary of 20,000Baht a month. The 12,000 I have being giving her is now not enough. She cannot pay her bank loan, because she does not take it from the 12,000Baht. She did not pay her electric bill 1,700 Baht, they took the meter. She yelled at me for not reminding her when the bill normally came and complains she has to go town to pay it 30 kms. oh! but now she can pay by bank transfer. And are you going to pay for this and this also. Plus the normal things I buy every month another few thousand Baht.

The 12,000 that I give her would pay all her bills every month if she took that money and paid them instead of just throwing it in her purse and then having nothing at the end of the month. She thinks money is love and who will give her more is giving her love. So she wants a man now with unlimited income to come and support her.... any offers out there....

The amount of money that your girlfriend spends every month would make 3 families with children very happy up here.

If I were you firstly I would dump her asap. If I really wanted to keep her I would take all her bills and pay it from the 12,000 baht you give her and keep the change myself.

If she wasn't happy with that that I would give her 25,000 baht as a going away present provided she goes, if not, then nowt and run away from her as fast as I could.

[finnomick1]

I wonder if they have taken into account the fact that there are more loans now because of the first cars and other things. This might lead to more actual unpaid debts, but procentual it might not have soared.

For instance if they say the for instance if there were first 10 unpaid loans and now 20 unpaid loans there is a 100% increase. However if the number of loans have gone up from 100 to a 1000 there is actually a decrease in the percentage of loans that are unpaid.

So id like to know how they calculated this, id love to join the guys saying the Thais are overspending and imminent doom looms and the bath is going to drop (love too). But the fact is the economy is booming growing at a rate the EU or US can only dream of. But if it is really calculated correctly then yes things could go really wrong, i too have often wondered how many Thais can have all those new cars. I personally know of family members using a large chunk of their income for their car. Much more as i would think is reasonable, but they just have other priorities.

Having new car and saving face. How do you explain to someone you love that if they have a saalary of 20,000 Baht a month, they cannot pay 13,000Baht for a new vechile. (yes I know they say that I should buy it for them, that I am too cheap, that they will find a man who will pay for everything), meanwhile you take the care today dear, I do not want those Thai people thinking that you cannot afford to buy a car and that you drive an old motorcycle and have to try to work here in Thailand. until you get your pension and maybe even then after, because you are not rich and we do not really want you here.

I bet the Thai population just can't wait to get their old age pension -- 500 baht per month -- it must take them ages wondering what to spend all that cash on, maybe another new car ?

[finnomick1]

I wonder if the government is going to expand the idea of credit cards to low - paid workers ? The amount of unpaid payments over 3 months is a sure indication that the government's scheme is working ( ha ha ). I also wonder what scheme the government is going to come up with next year to replace the tax refund incentive for first time buyers of new vehicles, after all, they've got to keep people buying to meet next year's forecast of economic growth.....