More Thais to default on their loans due to increased household debts: NESDB

[webfact]

NESDB: More Thais to default on their loans due to increased household debts

BANGKOK, 4 June 2014 (NNT) - According to the National Economic and Social Development Board (NESDB), more Thais are likely to default on their debt payments due to soaring expenses per household.

The NESDB reported that in 2014, most families would likely be unable to pay-off their debts in a timely manner as non-performing loans (NPLs) among consumer loans rose as much as 31.3 percent.

During the first three months of this year, defaults on loans longer than a three month period has increased to 42 percent.

Even though each household earns about 25,200 baht on average, their average expenses per month could reach as high as 19,000 baht.

The total debt per household stood at around 163,000 baht, which is a 9.95 percent increase from last year. At least 8 million households, which account for about 42.25 percent of all households in Thailand, are unable to earn enough income to cover their expenses.

Apart from that, 11.4 million households across Thailand had only 100,000 baht or less in their savings. Only 700,000 households were able to accumulate up to 500,000 baht of savings or higher.


-- NNT 2014-06-04

[clockman]

All the signs are there!

[JesseFrank]

I'm waiting for the posters in that other thread a few days ago who claimed that most Thais earn 40.000 a month these days.

Note that in this OP they have adjusted the 25.200 Baht per Thai person to per household. Huge difference

[LivinLOS]

During the first three months of this year, defaults on loans longer than a three month period has increased to 42 percent.

Increased 'to' 42 percent ?? Or increased 'by' 42 percent.. Kind of a key difference and I firmly disbelieve the former.

A 42% default rate on all debts over 3 months would imply a systemic banking collapse.

[Chao Lao Beach]

Kind of on topic, I just posted a question in the Biz section on this called, Bizzare Thai Loans Rules - click here I am shocked if what I am hearing is true.

Any input would be good.

This cold be a credit crunch time bomb ticking?

note, link above in blue is a Thaivisa thread question

Edited June 4, 2014 by Chao Lao Beach

[worgeordie]

I don't think Thais are very good at managing a budget ,my wife is a good example,i

try to instill in her the most important thing in managing ones finances,NEVER spend

more than you earn.and i don't think they would know how to cut back if money gets

tight,its not only Thais but most of the World must be in debit,I suppose the population

are just following their countries example.Its i must have it now society.

regards worgeordie

[gemini81]

I-phones, booze and that new Toyota parked in front of a shed that functions as a home..obviously....

Ben Franklin said he who spends less than he makes has found the philosopher's stone.

[leggo]

I see businesses closing down everywhere - it's hardly surprising when you see brand new cars and pickups outside homes where the owners don't even have a job!

Sent from my i-mobile IQ 2 using Thaivisa Connect Thailand mobile app

[robblok]

I don't think Thais are very good at managing a budget ,my wife is a good example,i

try to instill in her the most important thing in managing ones finances,NEVER spend

more than you earn.and i don't think they would know how to cut back if money gets

tight,its not only Thais but most of the World must be in debit,I suppose the population

are just following their countries example.Its i must have it now society.

regards worgeordie

I doubt its a Thai thing, I know of plenty of such people in the Netherlands too.

Now it is also the faults of the banks with their easy loans.

There are also plenty of Thais that do have good finances, usually the middle class.

[JesseFrank]

I don't think Thais are very good at managing a budget ,my wife is a good example,i

try to instill in her the most important thing in managing ones finances,NEVER spend

more than you earn.and i don't think they would know how to cut back if money gets

tight,its not only Thais but most of the World must be in debit,I suppose the population

are just following their countries example.Its i must have it now society.

regards worgeordie

I doubt its a Thai thing, I know of plenty of such people in the Netherlands too.

Now it is also the faults of the banks with their easy loans.

There are also plenty of Thais that do have good finances, usually the middle class.

And the middle class represents what part of the Thai population ?

2% ??

You should look further as the end of your soi .

[NongKhaiKid]

No doubt music to the ears of loan sharks.

[robblok]

I don't think Thais are very good at managing a budget ,my wife is a good example,i

try to instill in her the most important thing in managing ones finances,NEVER spend

more than you earn.and i don't think they would know how to cut back if money gets

tight,its not only Thais but most of the World must be in debit,I suppose the population

are just following their countries example.Its i must have it now society.

regards worgeordie

I doubt its a Thai thing, I know of plenty of such people in the Netherlands too.

Now it is also the faults of the banks with their easy loans.

There are also plenty of Thais that do have good finances, usually the middle class.

And the middle class represents what part of the Thai population ?

2% ??

You should look further as the end of your soi .

To be honest I don't know.

But to say that all Thais somehow can't handle money is crazy. They are humans, I am a human they are not aliens and its not genetic.

Plenty of people do have their finances in order.

[PattayaPhom]

And I can feel from the screen all these nasty posters that just love it when others are up <deleted> creek. Sad lives some lead

[ggold]

I don't think Thais are very good at managing a budget ,my wife is a good example,i

try to instill in her the most important thing in managing ones finances,NEVER spend

more than you earn.and i don't think they would know how to cut back if money gets

tight,its not only Thais but most of the World must be in debit,I suppose the population

are just following their countries example.Its i must have it now society.

regards worgeordie

I doubt its a Thai thing, I know of plenty of such people in the Netherlands too.

Now it is also the faults of the banks with their easy loans.

There are also plenty of Thais that do have good finances, usually the middle class.

And the middle class represents what part of the Thai population ?

2% ??

You should look further as the end of your soi .

I think you got that wrong! It would be about 1% of the population who are the richest. The middle class would make up about 40% of the Population even here in Thailand. Your first question makes no sense!

[chainarong]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I don't think Thais are very good at managing a budget ,my wife is a good example,i

try to instill in her the most important thing in managing ones finances,NEVER spend

more than you earn.and i don't think they would know how to cut back if money gets

tight,its not only Thais but most of the World must be in debit,I suppose the population

are just following their countries example.Its i must have it now society.

regards worgeordie

As you said Worgeordie , most countries have this problem , I want now society , is alive and well , although what I want I don't generally get.

[Confuscious]

A few years ago, I wanted to apply for a Visa Card at my Bank provider.

I have always about 800,000 baht in my Savings Account and about 200,000 baht in my Current Account.

The application was refused by the Bank.

My ex-wife, who had no job and her only income was what I gave her possessed a Visa Card from every possible provider in Thailand and also many Debet cards.

She applied for a Visa Card at the same Bank as me and got it approved.

<deleted> the Thai banks.

[robblok]

A few years ago, I wanted to apply for a Visa Card at my Bank provider.

I have always about 800,000 baht in my Savings Account and about 200,000 baht in my Current Account.

The application was refused by the Bank.

My ex-wife, who had no job and her only income was what I gave her possessed a Visa Card from every possible provider in Thailand and also many Debet cards.

She applied for a Visa Card at the same Bank as me and got it approved.

<deleted> the Thai banks.

Problem is many foreigners just pack up and leave rack up creditcard expenses then leave. I have read here on Thaivisa more then a few times that this has happened in country they came from.

Then the advice was don't pay they won't get you here.. shows a lot about the morals of many of the foreigners here. I don't like that I can't get a card.. but I do understand it with these kind of guys around.

I can link to topics where they all say screw the banks.. the would do the same here in a heartbeat and go home. So its quite understandable that Thais don't give us credit because these guys.

[icare999]

A few years ago, I wanted to apply for a Visa Card at my Bank provider.

I have always about 800,000 baht in my Savings Account and about 200,000 baht in my Current Account.

The application was refused by the Bank.

My ex-wife, who had no job and her only income was what I gave her possessed a Visa Card from every possible provider in Thailand and also many Debet cards.

She applied for a Visa Card at the same Bank as me and got it approved.

<deleted> the Thai banks.

look its simple you can walk away as a forang and banks could do nothing while your wife as a thai can be found and traced easily. Long ago one of my wife's family guaranteed a loan for a mobile fro a fiend. The fiend never paid anything but wed moved and then even after 6 years loan company found her because shed changed her family papers and got money back.

Thats reason the bak wont give you a credit card however much you might have in bank you can just leave and nothing they can do

[webfact]

Thai farmers are becoming more indebted: survey
By Digital Content



BANGKOK, June 4 - More Thai farmers were found burdened by debt in terms of the number of households and amount of debt, according to Kasetsart University's Office of Agricultural Economic Forecast Centre.

The Centre reported that a survey of the household debt situation of farming households in 2014 found that 78 per cent of a total of 5.7 million farming families are now in debt, an increase from 51 per cent recorded in 1996.

The Centre said that the amount of debts also expanded as well, increasing from Bt24,672 per family on average in 1996, to Bt76,697 per family on average in 2014.

The southern region has the most number of farming families in debt, followed by the central, northeastern, and northern regions, said the Centre. The major reasons for the farmers falling into debt were easier access to loan facilities, inflation and higher prices of goods.

The Centre, however, stressed that the overdue payment to farmers under the rice pledging scheme would help create more cash flow within the domestic economy over the short term and would help reduce the burden of debt for families by about Bt4,000 on average, or lowering a total of Bt6.57 billion from debt in the agriculture sector. (MCOT online news)


-- TNA 2014-06-04

[shirtless]

I think banks need to determine what people can reasonably afford to pay when undertaking a loan agreement, , credit here is to easily available , with the latest downturn in the economy i would expect to see a huge increase in loan defaults , Cars , Homes , Phones, and credit cards.and of course business loans.

[cloudhopper]

During the first three months of this year, defaults on loans longer than a three month period has increased to 42 percent.

Increased 'to' 42 percent ?? Or increased 'by' 42 percent.. Kind of a key difference and I firmly disbelieve the former.

A 42% default rate on all debts over 3 months would imply a systemic banking collapse.

And so would the latter.

[upena]

Good news for my brother-in-law - the repo man

[razer]

Sounds like USA economics. Got to happen to put things right in the economy.

[ramrod711]

The total debt per household stood at around 163,000 baht, which is a 9.95 percent increase from last year. At least 8 million households, which account for about 42.25 percent of all households in Thailand, are unable to earn enough income to cover their expenses.

To all the "democracy" posters on TV who said: "we were elected", 9.95% in one year? Thanks Yingluck and co., good job!

We won every election for the last 10 years! That makes you responsible for this. Thank you 3 times, your turn to cry now.

The Centre reported that a survey of the household debt situation of farming households in 2014 found that 78 per cent of a total of 5.7 million farming families are now in debt, an increase from 51 per cent recorded in 1996.

[icare999]

well done Taksin and clan etc keep peasants where they belong so 10+ years of mostly Taksin regime and poor are screwed in some ways serves them right for voting and worshiping the scumbag and believing all lies

And as for red shirt thugs how brave the are aren't they slightest thrust to them form army and they all run like frightened rabbits

A last hurrah from all you naive red shirt Taksin supporters shall we

Come on someone support this load of low life the Taksin clan and hangers on come on but like those who would and will never admit the holicost or evils of regimes I'm sure an umber will go to their deaths supporting vile dictators and are so brainwashed, naive can i say stupid to believe they are right

mods delete if you think to insulting but they can't help it i guess

[Daniel Boon]

any tips on personal loans lenders up to 50,000 baht unsecured?

[wvavin]

Sell away iPhone, car (got it from 100,000 baht rebate), LV bag, etc. = Formula to eradicate debt among the low income group.

[Daniel Boon]

Anyone familiar with the number of Thais that live and have built on land they don't own and therefore have no deeds activating 'adverse possession' ?

[rebelplatoon]

Thanks to the 'everyone a new car' scheme. Another imploded populist policy.

[wooloomooloo]

Thanks to the 'everyone a new car' scheme. Another imploded populist policy.

There's also the small matter of personal responsibility. We only learn from our mistakes. I've made hundreds and slowly getting to grips and I've never blamed anyone, not ever.

I can honestly say that all of my mistakes, usually money related, have served me well. I've wisened.