Thai poll shows household debts the worst in nine years

[webfact]

Poll shows household debts the worst in nine years



BANGKOK: -- Household debts have increased to an average of 219,000 baht per household this year which are the highest level in nine years with 49 percent of the debts being unorganized debts, according to a study conducted by the University of Thai Chamber of Commerce.

Economic and Business Forecast Centre director Thanawat Pholvichai of the university said the centre conducted behaviourial spending of 1,200 households during July 14-20. The findings from the study are as follows:

74.8 percent of the households polled said their debts have increased this year whereas 25.2 percent said they have no debts; average household debts amount to 219,000 baht representing an increase of 16.6 percent compared to last year’s average household debts which amounted to 188,000 baht.

The reason why many households resorted to unorganized money lenders because they had borrowed up to the limits permissible by financial institutions.

39.7 percent of the households said they borrowed for personal spending; 17 percent said they borrowed to repay unorganized debts and 10.9 percent said they borrowed to buy vehicles.

Asked about their ability to repay debts, 83 percent admitted that they used to have problem of repaying debts and 17 percent said that they did not have any problem.

Source: http://englishnews.thaipbs.or.th/poll-shows-household-debts-worst-nine-years/


-- Thai PBS 2014-07-24

[AnotherOneAmerican]

My Thai debt went from zero to 1.5Mbht in the last 12 months.

(Home loan)

Still + in the US.

Edited July 24, 2014 by AnotherOneAmerican

[Misterwhisper]

My household debt is zero Baht, although I'd argue that my household expenditure is much higher than that of the average Thai household (granted, I also earn a bit more than the local average, but not much).

But I manage my income carefully, don't buy stuff I cannot afford, don't engage in impulse buying, save for a few months if I think I need this or that new gadget, don't splurge half of my paycheck on a night out on the town as soon as I've cashed it - oh, and yes, I never, ever, ever, ever borrow money from anyone. I sleep well at night.

[AGareth2]

car

home loan next

[Lingba]

0 debt here...if I don't have the money, I don't buy it..that simple

[AnotherOneAmerican]

0 debt here...if I don't have the money, I don't buy it..that simple

You've never owned a house?

[Lingba]

0 debt here...if I don't have the money, I don't buy it..that simple

You've never owned a house?

No...never had the money to buy one

[ramrod711]

I owe less than 500,000 baht on a new pickup, I put 250,000 down and will pay the balance over 4 years. We have a house, some other land and owe nothing else. Like Misterwhisper I have a budget and live within my means. The pickup was a result of a weakening baht and a surplus of vehicles at the dealers as a result of cancellations from the first car scheme, it was too good a deal to pass up.

[Lee4Life]

It would be good to see some comparisons, such as average household debt versus average household income...for Thailand and also other countries. If the average income has increased the same amount percentage-wise as the debt, then there really isn't much to be alarmed about. And what about the farmers who had to borrow to survive when they weren't paid for their rice? Is that a factor in the increase?

Not really enough info.

[ParadiseLost]

It would be good to see some comparisons, such as average household debt versus average household income...for Thailand and also other countries. If the average income has increased the same amount percentage-wise as the debt, then there really isn't much to be alarmed about. And what about the farmers who had to borrow to survive when they weren't paid for their rice? Is that a factor in the increase?

Not really enough info.

I think it would be the opposite; perhaps if average income was increased, many would be able to afford a decent standard of living without resorting to debt.

Granted many have little self control, but many families and unemployed people fall into this trap without making foolish purchases.

Governments should help people to avoid debt, for example by providing affordable housing and public transport - not offer harebrained schemes such as the new car subsidy which was just a ploy to help the car industry....

Edited July 24, 2014 by ParadiseLost

[metisdead]

An off topic deflection post has been removed as well as reply. This is about household debts in Thailand, not about household debts in the USA, Canada or the EU.

[Ragzilb]

Also here no debt, Got my land and house in Thailand....or my wife does

[3NUMBAS]

looks like enforcers will be busy knocking borrowers teeth out in the future as no doubt they wont be able to pay back

[Time Traveller]

That's a pity.

[kingalfred]

Too many thais have no idea how to budget and get into debt with non essential luxuries

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[jaltsc]

"The reason why many households resorted to unorganized money lenders because they had borrowed up to the limits permissible by financial institutions.
39.7 percent of the households said they borrowed for personal spending; 17 percent said they borrowed to repay unorganized debts and 10.9 percent said they borrowed to buy vehicles."

It appears that people are accumulating debt to pay for things they can't afford and in many cases do not need in order to survive. They should realize that they are not a government that can print money whenever they overspend.

[daveAustin]

Why are people harping on about their expenditure? This is about Thai households, not expats.

The main reason why more are in debt now is down to that daft wage rise along with the car rebate thing. The situation can firmly be blamed on T through Y and was wholly inevitable and predictable.

[IBoldnewguy]

0 debt here...if I don't have the money, I don't buy it..that simple

You've never owned a house?

No...never had the money to buy one

After paying off two marriages and losing the property thereof in years now past.... I've given wanting to own or be owned by a house or another human being.... I've learned that nothing is better than something I don't want.... It has to do with recognizing that one's personal value has little to do with being able to point at objects/humans and claiming them as possessions.... Nothing is mine except myself and that is only temporary....

[noitom]

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

0 debt here...if I don't have the money, I don't buy it..that simple

You've never owned a house?

Good policy.

[Jeremy50]

0 debt here...if I don't have the money, I don't buy it..that simple

You've never owned a house?

No...never had the money to buy one

After paying off two marriages and losing the property thereof in years now past.... I've given wanting to own or be owned by a house or another human being.... I've learned that nothing is better than something I don't want.... It has to do with recognizing that one's personal value has little to do with being able to point at objects/humans and claiming them as possessions.... Nothing is mine except myself and that is only temporary....

Debt is for fools.

[selftaopath]

My household debt is zero Baht, although I'd argue that my household expenditure is much higher than that of the average Thai household (granted, I also earn a bit more than the local average, but not much).

But I manage my income carefully, don't buy stuff I cannot afford, don't engage in impulse buying, save for a few months if I think I need this or that new gadget, don't splurge half of my paycheck on a night out on the town as soon as I've cashed it - oh, and yes, I never, ever, ever, ever borrow money from anyone. I sleep well at night.

I agree and do likewise... have done for years. It might be called budgeting. However everything you wisely mentioned seems to be contrary to the average Thai way of thinking/doing. I don't see much delayed gratification in the Thai society. And certainly no long term view or consequences i.e. paying back money borrowed. Personal responsibility gives way to fun now...things now...etc. I'm glad I was brought up differently. When I was 16 and wanted a car, my father said,"well ...get a job to pay for it." He taught work ethic and self sufficiency amongst other things. I'm not sure what the average Thai parent teaches.

[DGS1244]

Its what happens when the 'government' give away tax etc. for new cars and other things such a the corrupt rice mortgage scheme. What did they really expect apart from making the rich get richer

[TechnikaIII]

0 debt here...if I don't have the money, I don't buy it..that simple

I have been living on the same principle since I traded out of debt from the 1987 stock market crash.

The cash flow was reduced to a trickle in my business (Melbourne, Australia), .. wow .. talk about tightening the belt! It was a good lesson, and helped me survive nearly 2 decades in Norway, one of the most expensive countries on the planet. (As an artist and single dad) It was something that my Thai ex-fiance simply didn't want to know about. She thought I was just going to walk in and bank-roll her spending sprees, including her mother's gambling. Stupid bitch.

Edited July 25, 2014 by TechnikaIII

[Cake Monster]

Good Lord !

These statistics are truly bad for people that are already embroiled in massive debt.

Almost 75% of the surveyed household said their debts had escalated by 16.6 % from the previous year, and with all the borrowing to repay loan sharks Etc, this cannot bode well for the Thai economy in general

[steve73]

From the figures in the OP, with 74.8% seeing increasing debt and 25.2% having no debt, it seems that not one household has seen a reduction in debt....other perhaps than a reduction to zero debt.

Is this just the way the figures are shown, or does it tell us that the debtors are getting more rash, whilst the more careful avoid debt completely..

Edited July 25, 2014 by steve73

[JacChang]

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It would be good to see some comparisons, such as average household debt versus average household income...for Thailand and also other countries. If the average income has increased the same amount percentage-wise as the debt, then there really isn't much to be alarmed about. And what about the farmers who had to borrow to survive when they weren't paid for their rice? Is that a factor in the increase?

Not really enough info.

I think it would be the opposite; perhaps if average income was increased, many would be able to afford a decent standard of living without resorting to debt.

Granted many have little self control, but many families and unemployed people fall into this trap without making foolish purchases.

Governments should help people to avoid debt, for example by providing affordable housing and public transport - not offer harebrained schemes such as the new car subsidy which was just a ploy to help the car industry....

That's what all people always say, wishing they have more income. Want my perspective? People who think such are only dreamers. Take any person with good financial management skills. They could live on 10,000 or 30,000 or 100,000 as salary. But it's these dreamers, who say "If only I had more income, I wouldn't be in debt." Sure blame everything else except the person. These same people when they get a promotion, guess what? New car, bigger houses, more expensive stuff. So average income increase? Nah. How about increasing that brain loaded with financial management of nil?

Governments cannot and SHOULD not help people to avoid debt. Governments are one of the worst managers financially. Everything they spend is from debt, even though they have a supply of tax revenue. And they frequently run out of money, and issue more bonds to cover themselves. The below quote is correct.

Affordable housing and transportation comes at the cost of tax payers money. Why should the people who mange their money wisely have to pay for those who don't give a damn about money? Would you like it if you build up a successful business, only to see most of the tax going to support those illegal businesses who declare bankruptcy and requires financial aid? You are right about one thing though, the car subsidy, it's not for the incompetent money managing people. It's for the benefit of those who can manage their money. Usually these people own assets whose factories will gain from more business. Did you think it really was made for the poor?

People with debt= Hopeless people with no responsibility and only wanting more. Money will suddenly appear, and it is completely okay to spend other people's money without guilt and worry. (You should see the happy faces of these people when their loan is approved.)

People without debt= Able to live within one's own means, and understand that there are some things which is out of reach and should not be owned. The only way to receive more money is by working hard or by making more money. Money don't just suddenly appear.

"The reason why many households resorted to unorganized money lenders because they had borrowed up to the limits permissible by financial institutions.
39.7 percent of the households said they borrowed for personal spending; 17 percent said they borrowed to repay unorganized debts and 10.9 percent said they borrowed to buy vehicles."

It appears that people are accumulating debt to pay for things they can't afford and in many cases do not need in order to survive. They should realize that they are not a government that can print money whenever they overspend.

[3NUMBAS]

theyre all living for today and no thought of the future ,gambling drains a lot away .most Thais struggle from day to day just on food bills

[laolover88]

What on earth is 'Unorganised Debt'!? Neither a concept nor a practice I have encountered

If you mean loan sharks and Money lenders, say so??

Thai banks are awash with land and property for sale as a result of failure to repay Secured Debt..Tisco and Kiatnakin busy selling off re-posessed vehicles. I have 100 page books from KBank and Bualuang on my coffee table!!!...........If your wife has money she can buy up Thailand.

Maybe the Thai Freebie is approaching the buffers?

If your farmers are inefficient, your rice is too expensive, your sugar is being denigrated as a lethal product, your forests have been plundered, you have no oil, all you have is solar power, somtam and garlic............which you can't really export.....the only commodity left is tourists...and really how many people want to look at a Wat?

They want a hassle free clean beach....so maybe the soldiers not stupid to start there

How a wealthy nation beggared itself!

[AnotherOneAmerican]

If your farmers are inefficient, your rice is too expensive, your sugar is being denigrated as a lethal product, your forests have been plundered, you have no oil, all you have is solar power, somtam and garlic............which you can't really export.....the only commodity left is tourists...and really how many people want to look at a Wat?

You forgot hookers, Thailand's biggest export.

About 50% of the world want them.

[mok199]

and they failed to mention..''the economic and buisness director of the...'' oh.. behave your self'',centers income rose dramatically''...