Thailand authorities have been trying to boost the country’s economy. One major concern is that Thailand has a massive amount of household debt that will reduce private consumption in the coming year.

The first-time car buyer scheme caused many households to accrue debt, which is a major concern. Many of those that did buy a car have now been paying off their debts, which is also a sign that private debt should lessen in the coming years.

The Bank of Thailand states that this year’s household debt is forecasted to rise, but next year, many car loan payments will be paid off. This will allow many households to be freed from debt and hopefully, boost private consumption in 2016 and beyond.

Thailand’s GDP is expected to grow stronger next year as well.

Household debt growth slowed last year and is expected to continue to slow. While many households have debt in the country, they remain financially stable. This information has been provided by health loan-loss reserves.

Household debts in the country are 10.4 trillion baht, with 27% of debt being home loans and 16% being car loans. With many families paying off their car loans in the coming year, auto loan debt will drop greatly.

-- 2015-04-12

Do Thai people look to the future ? Buy now ..cant pay in the future

Do Thai people look to the future ? Buy now ..cant pay in the future

Thai people look at the future as far as what they gonna have for their next meal. Everything beyond that is taboo.

That was a great idea then K Yingluck!! Put your people in to major debt and screw the domestic economy!

Like I have done in the past and in many other cases the falang will come to the rescue and pay out. It could be classed as stupidity but I think you have to except this in many thai-falang relationships

Strange story and very odd graph. Quotes no one, thin on facts, provides no insights that are not already known.

The graph that shows debt with credit cards starts before 1980. I would think very very very few Thais in the 1970's and 1980's even had a credit card so no debt. How many thais do you know even today that own a credit card. What a useless graph. The rest of the story was about household debt but graph was credit card why is that?

The graph that shows debt with credit cards starts before 1980. I would think very very very few Thais in the 1970's and 1980's even had a credit card so no debt. How many thais do you know even today that own a credit card. What a useless graph. The rest of the story was about household debt but graph was credit card why is that?

I agree, Thai Visa news showing a graph for the story which is completely misleading and wrong. Why do you think that the news section made up a grapg with "CITI" and "Bank of America" cards on it? Not Kasikorn.

Maybe in one of these 70 other websites (click here) it has been used on you will find the owner.

I think the graph is just an illustration of a rising tide. It has credit cards, a desk and so on. I don't think it was meant to accurately depict anything. It got the point across.

Why everyone is so upset about the graph used in the OP?

First of all it has a $ sign and secondly there are no numbers on it.

This is just clipart. People should get a grip before commenting.

Like I have done in the past and in many other cases the falang will come to the rescue and pay out. It could be classed as stupidity but I think you have to except this in many thai-falang relationships

Sir

You have to accept jack shxt, be a man and say no, and if you want to good relationship, pick someone who works, and has morals, not that much rocket science

Like I have done in the past and in many other cases the falang will come to the rescue and pay out. It could be classed as stupidity but I think you have to except this in many thai-falang relationships

But at least you earned the title: Farang Jai Dee..............

Which freely translated means sucker!!

Remember in the beginning of our relationship, my wife was often asked be her lady friends if I was Jai Dee.

What they really meant, was not if I was an abusive alcoholic beating her up or if I was a decent person.

No the real question was: "Does he give you money?"

Perhaps a reason so many Thais are in debt is because of this FACE bullshit. They want to drive a shinny car/truck, but live in a shack w/out running water and an outside shitter. GEEZE Priorities???? Oh and while I'm at it many don't seem to "keen" on working regularly either. I've offered work to many villagers here and hear "it's too hard/hot" something something. Well maybe the repercussions for choosing to "look big" will teach some of them a lesson...... doubt it but I guess it is a possibility (remote).

I also realize many Thais options are extremely limited due to the pathetic education (lol that's a stretch) system and corruption.

Strange story and very odd graph. Quotes no one, thin on facts, provides no insights that are not already known.

A poor sketchy review at best, does not add value over what even the poorest Somchai already knows.

Like I have done in the past and in many other cases the falang will come to the rescue and pay out. It could be classed as stupidity but I think you have to except this in many thai-falang relationships

But at least you earned the title: Farang Jai Dee..............

Which freely translated means sucker!!

Remember in the beginning of our relationship, my wife was often asked be her lady friends if I was Jai Dee.

What they really meant, was not if I was an abusive alcoholic beating her up or if I was a decent person.

No the real question was: "Does he give you money?"

This discussion seems a bit off topic, but here's my two cents. Most of the Thai- Farang couples I know, the husband is older by quite a bit. I am 18 years older than my wife, I have 2 pensions, she has none, I can return to my country for free medical treatment, my wife has medical insurance through a bank, it will not continue past 60 years of age, she will receive a 100,000 baht pay out. So, she wants security, who doesn't, if I had no social safety net, no pension, no health care, and my spouse was almost assured of dying before me, I would want a home, and, or, assets to insure a comfortable retirement. I can't speak for your relationships, my wife is a decent person, I love her, and I have ensured her financial security, because I wanted to, not because I was somehow duped into it. Do other wives ask her how much money I give her, certainly, she isn't ashamed of it and neither am i.

The OP mentions the debt brought on by the new car scheme which was largely to appease the motor industry who had been flooded out in 2011 but makes no mention of the other major reasons for debt.

The most prominent being the late or non payment of farmers under the rice pledging scheme which forced many into unsustainable debt just to survive let alone plant another crop.

Then there were the farmers who were not eligible for the scheme who had to pay the increased prices for rent and farming supplies brought on by the scheme.

The Govt of the days answer to this was to give out credit cards to farmers and taxi drivers who had no idea of the consequences of using them, this increased debt even farther.

Then there was the increase of corruption to unprecedented levels under the previous administration which allowed the loan shark industry to flourish as well as increasing costs across the board.

Strange tale, just opinion and hope.

That was a great idea then K Yingluck!! Put your people in to major debt and screw the domestic economy!

So she forced people to buy a car and get into debt did she? Don't think so

Household debts in the country are 10.4 trillion baht, with 27% of debt being home loans and 16% being car loans. With many families paying off their car loans in the coming year, auto loan debt will drop greatly.

As if no one is going to enter into new car loans this coming year. If no one enters into new car loans over the coming year then the debt must be so large no one will loan money. And of course car manufactures and sellers will be falling upon even harder times. When money is no longer being loaned the economy crashes. But don't worry, as many families pay off their car loans, many families will be entering into car loans.

Like I have done in the past and in many other cases the falang will come to the rescue and pay out. It could be classed as stupidity but I think you have to except this in many thai-falang relationships

Since when is a piece of fruit able to come to the rescue and pay someone's debt, and when did Thais start having relationships with pieces of fruit. I'm sure meant FARANG didn't you?

The graph that shows debt with credit cards starts before 1980. I would think very very very few Thais in the 1970's and 1980's even had a credit card so no debt. How many thais do you know even today that own a credit card. What a useless graph. The rest of the story was about household debt but graph was credit card why is that?

I have had a chance to look into many a Thai ladies wallet over the years and the number of credit cards they have is well astounding to put it mildly. I carry one that is paid in full each and every month. I even time my charges to co-inside with the payment date to get the free credit period of up to 60 days. If they can get multiple credit cards that easy how easy is it for them to get a bank loan or other financing.?

Only 27% on mortgage loans doesn't look good. Is the OP sure about yhese numbers. Where did he get these stats?

The OP mentions the debt brought on by the new car scheme which was largely to appease the motor industry who had been flooded out in 2011 but makes no mention of the other major reasons for debt.

The most prominent being the late or non payment of farmers under the rice pledging scheme which forced many into unsustainable debt just to survive let alone plant another crop.

Then there were the farmers who were not eligible for the scheme who had to pay the increased prices for rent and farming supplies brought on by the scheme.

The Govt of the days answer to this was to give out credit cards to farmers and taxi drivers who had no idea of the consequences of using them, this increased debt even farther.

Then there was the increase of corruption to unprecedented levels under the previous administration which allowed the loan shark industry to flourish as well as increasing costs across the board.

Further to this, just look at the current advertising by the banks on personal loans. They all advertise WE NEVER SAY NO. If that doesn't put household debt through the roof, then god knows where the economy will end up. This current lending scheme is reminiscent of similar schemes in Europe, USA and the UK that caused the GEC of the naughties. But this is Thailand and they will always do it their way, so really who are we as guests in this country to actually criticise. We moved here from our own countries because it was economically better for us and we also liked the place. So just for a moment think you are back in your home country and what approach you would have to foreigners complaining about the way your home country did things, I guarantee that 99.9% of you would all be saying if you don't like it go back to where you came from. So to all you whinging whining farangs, if you don't like the way the Thais do things (whether it be right or wrong) go back to where you came from, otherwise just shut the f up.

Household debts in the country are 10.4 trillion baht, with 27% of debt being home loans and 16% being car loans. With many families paying off their car loans in the coming year, auto loan debt will drop greatly.

As if no one is going to enter into new car loans this coming year. If no one enters into new car loans over the coming year then the debt must be so large no one will loan money. And of course car manufactures and sellers will be falling upon even harder times. When money is no longer being loaned the economy crashes. But don't worry, as many families pay off their car loans, many families will be entering into car loans.

Oh woes me the economy will crash as I never ever borrow money from a bank. I stay away from banksters as much as I can. I only go there to use my ATM card and to deposit money. They are scum bags right after politicians, lawyers and big business interests which in turn runs the government. Its a vicious circle and we are on the outside looking in.

The OP mentions the debt brought on by the new car scheme which was largely to appease the motor industry who had been flooded out in 2011 but makes no mention of the other major reasons for debt.

The most prominent being the late or non payment of farmers under the rice pledging scheme which forced many into unsustainable debt just to survive let alone plant another crop.

Then there were the farmers who were not eligible for the scheme who had to pay the increased prices for rent and farming supplies brought on by the scheme.

The Govt of the days answer to this was to give out credit cards to farmers and taxi drivers who had no idea of the consequences of using them, this increased debt even farther.

Then there was the increase of corruption to unprecedented levels under the previous administration which allowed the loan shark industry to flourish as well as increasing costs across the board.

Further to this, just look at the current advertising by the banks on personal loans. They all advertise WE NEVER SAY NO. If that doesn't put household debt through the roof, then god knows where the economy will end up. This current lending scheme is reminiscent of similar schemes in Europe, USA and the UK that caused the GEC of the naughties. But this is Thailand and they will always do it their way, so really who are we as guests in this country to actually criticise. We moved here from our own countries because it was economically better for us and we also liked the place. So just for a moment think you are back in your home country and what approach you would have to foreigners complaining about the way your home country did things, I guarantee that 99.9% of you would all be saying if you don't like it go back to where you came from. So to all you whinging whining farangs, if you don't like the way the Thais do things (whether it be right or wrong) go back to where you came from, otherwise just shut the f up.

Having a bad hair day are we??

Many of us have been living here for a long time, and don't consider ourselves guests.

We have invested here, have Thai families and care about the way the country is run!!

We have every right to criticize the powers, because we are taxpayers (with limited or no rights) but no one is going to tell us to shut up.

Especially not a tourist!!

And yet, the message from the PM was, go forth and spend big this holiday... something is

missing here..... everybody knows that spending creates demands hence more products

and more work, but this is a vicious circle, spend more, more demand, but on the other hand

spend more, leads to deficit at the end of the month....

Do Thai people look to the future ? Buy now ..cant pay in the future

Thai people look at the future as far as what they gonna have for their next meal. Everything beyond that is taboo.

It is not only a Thai condition

Country with highest house hold debt as % of GDP Source: The Economist

#1 Ireland

#2 UK

#3 Canada

#4 South Korea

#5 Malaysia

#6 US

#7 Thailand

#8 Japan

#9 Singapore

#10 HK

in the post above, excellent info

Please provide a clickible link

Was it or was it not Thailand who orchestrated The 1997 currency/crash/economic disaster.

Go to any Thai bank website and look in English at the amount of property they hold in default .property they hold and are still considering as an asset.

Thai baht should be at least 40 to the USD and 25 to the AUD.

Thailand is the Greece of Asia but they won't admit anything is wrong.As much as I love Thailand and its people, it's time for Thais to get off their high horse and back to the real world.Not all that glitters is gold.

That was a great idea then K Yingluck!! Put your people in to major debt and screw the domestic economy!

Can't really blame Yingluck. People who only hear what they want to hear and believe only what they want to believe, are the people easily fooled.

Democracy is only practical for the wise, and not for the fools.