Household debt in Thailand continues to rise

[webfact]

Household Debt In Thailand Continues to Rise
By Khaosod English

BANGKOK — Household debt in Thailand will to rise this year but at a slower place, the National Economic and Social Development Board (NESDB) said yesterday.

According to NESDB's deputy secretary-general Chutinart Wongsuban, household debt reached 85 percent of the gross domestic product (GDP) in the fourth quarter of 2014, up from 84 percent the quarter before.

This trend is expected to continue in 2015, but Chutinart stressed that the pace rising debt of is "not worrying" compared to many other countries, thanks to Thai financial institutions' careful deliberation on loan applications.

According to NESBD, debt defaults also rose in the last quarter of 2014.

"The number of people who failed to repay debt for more than three months in the last quarter of 2014 rose to 30.4 percent, which is valued at more than 14.2 billion baht," said Chutinart.

Full story: http://www.khaosodenglish.com/detail.php?newsid=1424769435


-- Khaosod English 2015-02-24

[seajae]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

[robblok]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

Still those debt rates are not that high compared to western countries..

France 93,5

UK 90,6

Germany 78,4

Netherlands 73,5

[clockman]

I think it is wishful thinking, on Chutinart part? As there is no transparency!

[slipperylobster]

Thing is, that most people here do not qualify for loans....they get a relative, or some other sap to sign for it.

Another problem is, they borrow even more from Peter..to pay Paul. And then go on to the other 10 Apostles, in turn.

So that 30 percent is going to explode, exponentially...very quickly

[clockman]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

Still those debt rates are not that high compared to western countries..

France 93,5

UK 90,6

Germany 78,4

Netherlands 73,5

[clockman]

True, but we know of the problem. They do not. And as white lies are acceptable. Even from finance ministers!

[trogers]

Over 30% of debtors cannot repay their debts, and it is not worrying.

So at what % should the worry starts?

[MZurf]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

Still those debt rates are not that high compared to western countries..

France 93,5

UK 90,6

Germany 78,4

Netherlands 73,5

The problem in Thailand is that most of what people owe are borrowed in the grey market so is not included in this statistics. It would be interesting to see some estimated figures that include theses type of loans as well.

I'm pretty sure the figures will be much different.

[bubblegum]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

Still those debt rates are not that high compared to western countries..

France 93,5

UK 90,6

Germany 78,4

Netherlands 73,5

Those debt are in morgages mostly, not in new cars one cannot afford.

[angiolo]

I see it around me in Mae sai. Thais living in crappy rented hovels and have a new Honda and even more expensive cars. I see them wheel out their roadside food stalls. .Surely not enough income to pay off much debt.

[robblok]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

Still those debt rates are not that high compared to western countries..

France 93,5

UK 90,6

Germany 78,4

Netherlands 73,5

Those debt are in morgages mostly, not in new cars one cannot afford.

And you know this to be true ? Id love to see those statistics.. I know I don't have them. But remember in the Western countries we dont grow 4 or more % a year and here we do. So its not really a "the sky is falling scenario"

I do like the other comment Mzturf about the informal loan sector.. as that is an important one that should certainly be included.

Though 30%.. if that is of all loans it would be real worrying.. wonder if its a mistake.

[robblok]

Over 30% of debtors cannot repay their debts, and it is not worrying.

So at what % should the worry starts?

Do you believe these figures ?.. I mean 30% that would be a total disaster

I read it more as percentage of people not paying rose with 30% not of all loans.. but of people not paying.

Maybe it was 9% before and now 12% (just fictive numbers that are easy for calculation)

[tullynagardy]

Chutinart stressed that the pace rising debt of is "not worrying" compared to many other countries, thanks to Thai financial institutions' careful deliberation on loan applications.

I have genuinely never seen more wreckless lending in my life.

He`s obviously written this for a laugh.

[Cloggie]

Let's buy a car but first let's go to the bank for a loan...

[halloween]

My BIL was unable to borrow from a bank a few thousand dollars for a quite reasonable (and proven to me) business proposal even though he owned his home. Paid back in 2 years @ 10% flat (his suggestion, I offered 12% reducible) and his family's income has soared.

[Thai at Heart]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

Still those debt rates are not that high compared to western countries..

France 93,5

UK 90,6

Germany 78,4

Netherlands 73,5

Those debt are in morgages mostly, not in new cars one cannot afford.

Who says that a huge wedge of the new thai stuff isn't in mortgages?

[clockman]

Smoke and mirrors, Thats why corruption will not go away. No transparency

[rheinwiese]

Published 11.09.2014

About 87% of Thai credit-card holders maintain running balances on their credit cards, increasing concerns about growing levels of household debt, a survey by the University of Thai Chamber of Commerce.

Thanavath Phonvichai, the UTCC's vice-president for research, said the survey of 1,198 people taken Sept 1-6 showed only 13% of people paid off their entire balance within the past three to six months. During that time, 28% of cardholders paid only 5% of their balance, 47.7% paid 10-20% and 11.3% paid nothing at all.

More significantly, the university's centre for economic and business forecasting also found that cardholders earning less than 20,000 baht a month had outstanding credit-card debt almost three times their monthly earnings. The groups with the largest debts were students and "for hire" workers.

[Anthony5]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

Still those debt rates are not that high compared to western countries..

France 93,5

UK 90,6

Germany 78,4

Netherlands 73,5

.Also any figures on the bad loan percentages in those countries?

[ramrod711]

thanks to Thai financial institutions' careful deliberation on loan applications.

"How much land do you have? We really don't care if you can pay the loan, lot's of buyers for your land. Sorry we can't advise you that you will not be able to repay with your income, but it isn't in our best interest".

[robblok]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

Still those debt rates are not that high compared to western countries..

France 93,5

UK 90,6

Germany 78,4

Netherlands 73,5

.Also any figures on the bad loan percentages in those countries?

Nope.. but I can grantee you that the 30% is not the amount of bad loans but the increase in bad loans in a percentage. So even if I had those figures I could not compare them with the Thais as the article does not mention how much only the increase (that is how i see it I could be wrong but I dont think so) 30% default on all loans.. that would be huge and banks would collapse. 30% increase in bad loans.. bad but not as bad as the other statement.

[robblok]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

Still those debt rates are not that high compared to western countries..

France 93,5

UK 90,6

Germany 78,4

Netherlands 73,5

Those debt are in morgages mostly, not in new cars one cannot afford.

Who says that a huge wedge of the new thai stuff isn't in mortgages?

Farangs want them to be in cars they can't afford as that would justify them not having a car or a second hand car and can say that the cars the Thais have is something they cant afford. Case of wishful thinking.. though I am sure there are people who have a shiny new car and cant afford it.. but MOSTLY as the guy stated.. i doubt it.

[tif]

How many times have we heard this? unfettered Capitalism perpetrated and encouraged by ALL sides.

[seajae]

thing is in western countries the fact they have small wages would preclude them from getting loans for cars that cost them all their wage just about, here they dont care.

[trogers]

Over 30% of debtors cannot repay their debts, and it is not worrying.

So at what % should the worry starts?

Do you believe these figures ?.. I mean 30% that would be a total disaster

I read it more as percentage of people not paying rose with 30% not of all loans.. but of people not paying.

Maybe it was 9% before and now 12% (just fictive numbers that are easy for calculation)

The article said 'rose to...' and not 'rose by...'.

[robblok]

Over 30% of debtors cannot repay their debts, and it is not worrying.

So at what % should the worry starts?

Do you believe these figures ?.. I mean 30% that would be a total disaster

I read it more as percentage of people not paying rose with 30% not of all loans.. but of people not paying.

Maybe it was 9% before and now 12% (just fictive numbers that are easy for calculation)

The article said 'rose to...' and not 'rose by...'.

If its true (find it hard to believe that 1 in 3 does not pay its debts and it causes no trouble for banks) then its pretty disastrous.

[surangw]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

hard to teach that lesson in a snuak today, suffer tomorrow mind set

[trogers]

Over 30% of debtors cannot repay their debts, and it is not worrying.

So at what % should the worry starts?

Do you believe these figures ?.. I mean 30% that would be a total disaster

I read it more as percentage of people not paying rose with 30% not of all loans.. but of people not paying.

Maybe it was 9% before and now 12% (just fictive numbers that are easy for calculation)

The article said 'rose to...' and not 'rose by...'.

If its true (find it hard to believe that 1 in 3 does not pay its debts and it causes no trouble for banks) then its pretty disastrous.

That's 30% of no. of people, not 30% of total loan.

[cooked]

have to wonder when they are going to start teaching thais how to manage their money and not take out higher purchase on cars, homes etc when they simply dont earn enough to pay for it. It amazes me how many buy a new car then cant afford to buy food or even the fuel to drive it, it seems face is too high on their lists & that it even surpasses their wife and families well being/survival.

hard to teach that lesson in a snuak today, suffer tomorrow mind set

.. just like the Americans were taught before the property crash not so long ago you mean? Thailand is headed for a crash for sure, what isn't easy to predict is when.

http://www.forbes.com/sites/jessecolombo/2013/11/04/thailands-bubble-economy-is-heading-for-a-1997-style-crash/