Almost all Thai labourers deep in debt

[Tokay]

My Wife's daughter is married to a construction worker and he works insane hours just to get by. I don't think some Westeners really know just how hard the average Thai laborer has to work just to make ends meet for themselves and their family.

Life is unfair and often cruel. However, someone needs to make rice, build poor quality buildings, sew clothes, and dig ditches, and they need to do it cheaply in order for everything to continue working the way it does.

I feel for those who do not live above their means and bust their bum day in and day out, but even a small raise isn't going to pull them out of their financial misery, as their raise will never be able to keep up with inflation. That is just a sad fact of life.

[rotary]

That sounds like a lower % than American workers to me.

[Som wat]

Can anyone say they are really surprised, Thais are very much like children ..must have must have must have…without thinking of consequences like REPAYING the Loans etc..ESP the Shark loans

Plus lets not forget on top of personal loans etc Inflation is affecting millions just on food purchase and daily school costs for children

This is going to create massive civil unrest far worse than what is being seen now

You mean that Thailand is the West 30 years ago?

[Som wat]

Wasn't it reported last year that teachers have an average debt of 1m baht?

But they do get interest free loans, and a guaranteed 10k p/m job for life that gives them lots of face in their home jungle shack village.

[Tokay]

Every Thai I personally know has an iPhone or Samsung phone, and half of them have a tablet too. Almost all of the males booze it up on the weekends. All the females shop at the newest malls, and are always at the markets buying clothes, shoes and trinkets. They are no different than anyone else in the world, they want things so they buy them. They want to have a good time, so they do. If you have the option of credit, a lot of people use it. And like everywhere else in the world, if you're not careful, you will dig yourself into a deep hole.

That said, I do understand that is not all Thais. Some are living day to day in shacks or box apartments. Those people will always live the same way no matter how much or little money they make. Good hearts or black ones, Asian, black or white, life doesn't care.

[Donnie Brasco]

Here's how one becomes wealthy or how one grows one's wealth.

One does not buy depreciating assets unless one needs to eat them or one can use them to make more money than they cost one.

Unfortunately over the course of their whole lives, 99% of Thais are conditioned to do the opposite of this.

A truly Buddhist society would mitigate against Thais indulging in impulse and non-productive consumption.

Bye.

"Sometimes, 'fuggedabowdit' just means fuggedabowdit. . . . "

Edited April 25, 2014 by Donnie Brasco

[Soutpeel]

That sounds like a lower % than American workers to me.

A similar thought occurred to me, how much debt do you think a labourer is in in the UK ?.....assuming of course that you can find a British labourer these days

[Soutpeel]

Is there a credit tracking system in Thailand such as most countries have (e.g. TRansunion, Experia, Equifax)? How are low income people qualifying for loans that they can't afford? Banks here are not stupid. There has to be some way to assess credit worthiness here.

Could you not ask the same question in the UK or US

Getting credit in Thailand for low income people is harder than say for the low income people in the US or UK up to a couple of years ago, and look how that turned out

[art vandelay]

no different from many western countries where the poor are in debt up to their ears

[Soutpeel]

no different from many western countries where the poor are in debt up to their ears

Please do not post such falsehoods, TV finest Thai cultural experts tell us only Thai's are that stupid to get themselves in debt, the west is a Utopia where everyone is flush with cash, don't spend beyond their means and are experts on all things financial which translates to thailand by the fact you have never heard of a farang being cleaned out financially by a thai, it just never happens

[englishoak]

The trap has been basically the same as in the west only with different items, all of which they cant afford, especially the poor

In the west its Land,Mortgages and credit cards and generally higher price items but there is still also the very poor who rely on state benefits .

Here its cars, phone contracts, phones loansharks, there is no state benefit system here but then again no one here will die of starvation or cold.

Its a problem the whole worlds uneducated poor is facing with the rise of technology, machinery to replace them.

The poor here do exactly the same as in the west too, they drink too much, smoke too much and gamble too much, Ergo they waste too much of the little they have on things they cannot really afford but decide they must have.

Things will get worse here just as they will in the rest of the world for the poor and unskilled.

Its not a political problem so much as a world wide social one, people are living beyond their means nearly everywhere, all the stuff people want and the wishes to have what they cannot afford dosnt help either.

This dosnt apply to everyone of course but it does to the vast majority, expectations have far outstripped reality for many.

[DrTuner]

The difference to west is, there the shit has already hit the fan.

[attrayant]

Could you not ask the same question in the UK or US.

Getting credit in Thailand for low income people is harder than say for the low income people in the US or UK up to a couple of years ago, and look how that turned out

My question wasn't rhetorical.

[attrayant]

One does not buy depreciating assets unless one needs to eat them or one can use them to make more money than they cost one.

What are you going on about? People spend for reasons other than investment and profit all the time, and still manage to be financially secure. It's a simple matter of living within your means.

And assets that you can eat are consumable assets, not depreciating assets. Food, fuel and water are all consumable assets.

[AnotherOneAmerican]

Is there a credit tracking system in Thailand such as most countries have (e.g. TRansunion, Experia, Equifax)? How are low income people qualifying for loans that they can't afford? Banks here are not stupid. There has to be some way to assess credit worthiness here.

Could you not ask the same question in the UK or US

Getting credit in Thailand for low income people is harder than say for the low income people in the US or UK up to a couple of years ago, and look how that turned out

Thais getting credit in Thailand is incredibly easy.

If you have employment or land or a friend with a business.

No credit history required. Bank or loan shark will provide.

Friend says he employs you, issues 6 months bogus wage slips, bank will lend with only phone call to friend.

Especially easy if loan for house or car.

[meatboy]

What gets me is that their all in debt but do you think I can get one for very good wages & me supplying the equipment, to replace 7 tiles on my roof before the rainy season hits? Nope, the Falang will have to risk life & limb, ( I weigh at least 2 times as much as your average Thai which is why I want to pay someone else to do it) to get it done himself although this is technically illegal. There isn't a day's work in most Thai's, they'd rather sit in their hammocks drinking Lao Chow moaning about how little money they've got... F*****g annoying... Thai Males I'm talking about, Thai Women work very hard & this Country would completely fall apart without them..

agree 100% we have been trying to get a gardener to tidy up the garden and cut the grass[our grass cutter] full days work 8-12,2-4 for 600bht.they don't want to know,WHY because we have a large garden.

but there are a few that work hard,we had a plasterer at our house and he was very good works for a co.that builds luxury houses 400bht a day and that is all day.

[Kf6vci]

Usury? What about the going rate of 5% a month?

The other day, some politician was threatening the rice farmers with non-payment in retaliation for them suing to get their rice paid...

Well, I know some folks who make stupid life choices. From I-Pads and I-Phones to a new Mazda 3 or some 50,000 Baht washing machine.

But who am I to tell others how to live and what to buy?

I have a 720 Baht Nokia phone and use Skype's world flatrate @ 440 Baht (flat-rate calls to Thai mobile phones and landlines and some 50+ other countries).

Beats 4-digit cell phone bills.

One person cannot make the monthly payment for broadband - but would drive a truck to Bangkok rather than taking a luxcury bus @ 525 Baht one way. He will be tired and waste many thousands just on gas...

Why? To pose as a successful entrepreneur?!?

I would rather ride around on a bicycle but pay the internet bill...

Denial is terrible and I knew folks who would not repay a single Baht of those cripplingly high > 60% p.a. secured loans. More madness - why not sell the assets securing the loans?!? After x years, even selling rice fields for 25 cents on the Dollar makes more sense than paying loan shark rates all these years...

[dude123]

My Wife's daughter is married to a construction worker and he works insane hours just to get by. I don't think some Westeners really know just how hard the average Thai laborer has to work just to make ends meet for themselves and their family.

Life is unfair and often cruel. However, someone needs to make rice, build poor quality buildings, sew clothes, and dig ditches, and they need to do it cheaply in order for everything to continue working the way it does.

I feel for those who do not live above their means and bust their bum day in and day out, but even a small raise isn't going to pull them out of their financial misery, as their raise will never be able to keep up with inflation. That is just a sad fact of life.

The saying "one is rich by who they are, not by what they possess" is a reminder for all of us when tough times come by. I've been there a few times in my life and had to work my butt off to make things work, but I also know many people that work very hard and don't get the breaks. Life doesn't seem fair sometimes.

[trainman34014]

My Wife is a retired Thai Midwife of 25 years service. We have no debt and don't need or want any. However; because she is a retired 'Civil Servant' all Thai Banks bombard her with offers of loans up to 1 million Baht on an almost weekly basis. She has phoned all these people to stop this nonsense and when that didn't work we went personally to all the Banks involved and asked the manager's of all of them to stop these offers. Most of the managers had no clue how to stop it because for the most part they are computer generated geared to lists of former Government employee's so, the paper just keeps on rolling out.

Thing is; for people who are tempted or vulnerable to such loans and are not mentally strong enough to resist temptation, this is a sure way to overburden people with debt. Problem starts at the top....as usual for Thailand.

[robblok]

That sounds like a lower % than American workers to me.

A similar thought occurred to me, how much debt do you think a labourer is in in the UK ?.....assuming of course that you can find a British labourer these days

People love bashing Thais but I know for a fact that in my home country the Netherlands there are loads of people in debt too. I know because as an accountant i work with a debt restructuring firm that handles personal bankruptcies and such.

There are poor people (and stupid well off ones) everywhere that are in debt. Most love spending more as what they have. Its not a Thai thing its a human thing.

Then you get all those farangs here defending why they use old stuff and Thais should do so too so the farang does not look dirt poor. Just accept your choice and accept theirs. You choose to use old crap they dont.. they are in debt you are not. No need to bash them for their choices unless you feel insecure about not having the new stuff.

[belg]

i can only concur that everything is getting more expensive even basic needs as water... a pack of water now 50-60 baht for 6 bottles ...

[mijan24]

Yes you can see this everywhere - what can you see you ask - Thai people trying to live the good life with no means to support it.

I for one wish them a good life but firstly learn about life and how to aquire it - cerainly not by buying everything that is advertised such as IPods,skin whitening creams,new cars,new motorbikes etc etc - learn to do without, learn to budget, learn to enjoy the simple things in life - now the hard one learn to WORK otherwise come 2015 things will only get worse - how come you ask? - ASEAN means more people available to WORK and live yet remit money back home this should tell you something - if it doesn't then enjoy wallowing in your self made debt.

In todays news a message for the Thai labour force:

BANGKOK: -- WHILE THAI WORKERS are expected to voice grievances over low pay against the rising cost of living today, many migrant workers continue struggling to make ends meet with little complaint. For these workers from Cambodia, Myanmar and Laos, Thailand is a still a good place to work.

ASEAN labour force is sending Thai workers a message - will they listen?? my opinion - NO.

[Bcgardener]

One of my staff purchased a car under the first car scheme. I gave her a company letter stating her salary. 14,000 Baht a month. She got the loan and the car. The repayments are 11,000 + Baht per month.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

[Eloelo]

One of my staff purchased a car under the first car scheme. I gave her a company letter stating her salary. 14,000 Baht a month. She got the loan and the car. The repayments are 11,000 + Baht per month.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

maybe she works nights to help pay for her new car

[kimamey]

That's what you get for not letting Thaksin come back.

If he was here everyone would have been rich in 6 months.

He said so.

"I promise that I will make all Thai people rich within six months."

The Thai laborers must be "fake Thais".

And when the Thai voters did then put his sister/party into power, their first real act was to cut corporate-taxes, whereas the poor are still poor, after almost three years.

Perhaps Thaksin was joking, when he made his 'pre-election promise', or perhaps time flows differently in the Middle-East ?

If this happened in the UK, there would be a group of protesters following him round, singing "Why Are We Waiting" at every opportunity !

The thing is in the UK or most other western countries claiming you'll make everyone rich ever let alone in 6 months would get you laughed at not voted for. At the last UK election the Conservatives were voted in albeit without a majority after promising a harder time than Labour. I don't think they were necessarily right but that's what happened.

I wonder how many Thais actually believed that. I'm assuming he actually said that he would make Thais rich in 6 months.