Thailand has highest household debt: Finance Minister

[MaxYakov]

True story.

A young man in Bkk with a reasonable job 20k has been scrambling around for 3 months to get the money for a Toyata Yaris he ordered, needing around 50K deposit, He was well happy with the terms offered 9,500 Bht a month for 7 years.

4,000 bht for room rent, petrol and upkeep of the Yaris, his food for the month, and drink + plus pleasure. SAVINGS ???? NIL.

Not forgetting internet for facebook and, i phone.

He should get a bicycle to match his (apparent) level of productivity and value to society. Live in a "cracker box" POS, 4k room and scrimp for a vehicle that will be a burden? Of course, his sex life would suffer, which is what it is primarily about.

[VIPinthailand]

Thailand become like these USA losers. borrow money, buy all they want, then cry like babies because no job and need 3 jobs to pay interest rate.

[trogers]

Thailand become like these USA losers. borrow money, buy all they want, then cry like babies because no job and need 3 jobs to pay interest rate.

And all by educated people who would laugh at your rubbing tree barks for lottery numbers.

[MobileContent]

Normally in Germany they would say how much in actual value it is in terms of Euros. The figure can be manipulated.

The country’s household debt soars to 80 per cent in seven years, a highest increase in the world, Finance Minister Sommai Phasee said.

[AZBill]

Thais really have no concept of money management.

[retsdon]

It would be interesting if anyone could find a sector breakdown of this debt. For example, the UK has a very high debt to GDP ratio, but almost ninety percent of thzt debt is owed on property, which in theory at least is an appreciating asset. When property is taken out of the equation, the average household debt in the UK is just over 6,000 per household - not a huge number of you take vehicles, etc, into account.

You have to think that's not the case in Thailand. Most of the Thai people I know that are in hoc are lying out for distinctly DEpreciating assets like new model cars or electronic goods. In essence, they'll never own the nominal equity value of their debt, ever. Everything they are paying is a straight out wealth transfer from debtor to creditor.

But that's just an anecdotal impression. Like I say, it would be interesting if anyone could find the sector breakdown in Thailand.

[VIPinthailand]

I don't know how they can get a loan for a 1 million bahts pickup. guys make 15k a month, interest is 15k, they live in one room at 3000 bahts with fan.

I think many thought they would make some kind of business with their car and their plan is not working . Now they are screwed.

Edited April 4, 2015 by VIPinthailand

[trogers]

It would be interesting if anyone could find a sector breakdown of this debt. For example, the UK has a very high debt to GDP ratio, but almost ninety percent of thzt debt is owed on property, which in theory at least is an appreciating asset. When property is taken out of the equation, the average household debt in the UK is just over 6,000 per household - not a huge number of you take vehicles, etc, into account.

You have to think that's not the case in Thailand. Most of the Thai people I know that are in hoc are lying out for distinctly DEpreciating assets like new model cars or electronic goods. In essence, they'll never own the nominal equity value of their debt, ever. Everything they are paying is a straight out wealth transfer from debtor to creditor.

But that's just an anecdotal impression. Like I say, it would be interesting if anyone could find the sector breakdown in Thailand.

A real property may not necessary be an appreciating asset. Land would be, but not necessary the structure.

Badly located condo may only just hold the same price over a decade, which in reality is losing value to inflation.

[JetsetBkk]

Does Finance Minister Sommai Phasee know about quantitative easing?

Give it a go, mate.

[soalbundy]

Does Finance Minister Sommai Phasee know about quantitative easing?

Give it a go, mate.

QE is so 2008, but it would drive the Baht down and they could squeeze in even more Chinese tourists, go for it.

[welshissan]

The ARMY needs a lot of budget. ......

Amazing post from a newbie ??? Target the army---I wonder why ?? another one joins the bashers.

Of course it is the army that created this mess---ha ha ha-----go and have a strong coffee.

What is it with you and newbies ?Afraid that they don't follow your policies or your way of thinking ?

Too many newbie bashers on here

Where does Suwadee S say that any of the current problems are caused by the army ? I can't see it !

As for the army and their budget didn't the general increase it by 10% after becoming the leader of this country ?

Why ? is he expecting an imminent attack from Tibet ? or more like a well done bonus for his cronies ?

Thailand already has one of the best military forces in the region, but cannot tackle the militants in the south.

Awaiting ginjag for your reply on another newbie, thanks :-)

[JetsetBkk]

Thaitanic is heading for the iceberg at full steam.

And everybody on the bridge are acting like headless chickens!!

Roll on 75 baht / GBP.

[samran]

>>In order to boost public spending, the Finance Ministry is mulling ways to increase the efficiency of tax collection in order to finance investment projects.<< Quote

So according to Thai logic, decreasing peoples disposable income will make them able to spend more!!

Makes sense........................

Plenty of people who should be paying tax simply arent.

[apetley]

I don't know how they can get a loan for a 1 million bahts pickup. guys make 15k a month, interest is 15k, they live in one room at 3000 bahts with fan.

I think many thought they would make some kind of business with their car and their plan is not working . Now they are screwed.

I mentioned earlier a family friend who just bought a pickup at 7k pm for 7 years. He earns 10k pm.

1st year insurance was included.

I casually mentioned after the first year that his insurance would be at least 1k pm but the implications just don't seem to register. It is truly baffling that people get into, indeed are allowed to get into by the reckless lending of money, such situations.

Edited April 5, 2015 by apetley

[i claudius]

What really amazes me is that a Thai can get a credit card yet earn hardly anything, but me a foreigner has to have a million baht in a Thai bank account before I can have one,and all I want it for is to pay for things online ,like air tickets,then clear it at months end ,amazing Thailand

Edited April 5, 2015 by i claudius

[chiang mai]

Thaitanic is heading for the iceberg at full steam.

And everybody on the bridge are acting like headless chickens!!

Roll on 75 baht / GBP.

Stringent rules apply to drug use here, please be careful.

[trogers]

Thaitanic is heading for the iceberg at full steam.

And everybody on the bridge are acting like headless chickens!!

Roll on 75 baht / GBP.

Hang on to your sarong! What if the UK announces another series of QEs before Thaitanic hits an iceberg?

[i claudius]

Or Labour get in propped up by the SNP

[billd766]

Or Labour get in propped up by the SNP

With some luck it will be the Conservatives and UKIP with the Conservatives as the junior partner.

As for the Lib/Dems look a long way down the list of also rans and lost deposits.

[NeverSure]

>>In order to boost public spending, the Finance Ministry is mulling ways to increase the efficiency of tax collection in order to finance investment projects.<< Quote

So according to Thai logic, decreasing peoples disposable income will make them able to spend more!!

Makes sense........................

Plenty of people who should be paying tax simply arent.

Actually people pay a lot of tax and the claim that it's the lowest in the world as a percentage of GDP is simply not true. Maybe they mean income tax but Thailand hammers on import and VAT taxes.

Thailand is more in the middle of all countries with Europe being very high and oil rich countries usually have almost no tax. Thailand is 17% and that should be enough for anyone. (The US is 27% and many W. European countries are 40+%) LINK

I keep reading how they talk about more taxes and find excuses for it but I don't know how that returns happiness to the people. Thailand has had a low debt to GDP ratio and if they'd stop spending they could keep it there.