Household Debt Remains a Big Concern in Thailand

[mikemac]

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

What a strange comment , lee. Did you read the op ? It concerns household debt in Thailand, in general, not in the cases where there is a wealthy and generous farang like yourself willing to "come to the rescue".

Without doing any research whatsoever I am sure the vast majority of Thai households do not have the benefit of a farang like you to help them out.

[sirineou]

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

What was the debt acquired for is the question. The UK is high, but 90 percent of UK household debt is owed on property, which historically is an appreciating asset. Seventy percent plus of Thai loans are for vehicles or other unspecified things - almost certainly consumer goods - i.e. Items which will eventually depreciate to zero. In 20 years the Brit will own a house that's likely to be worth as much or more as he's paid in total ...including the interest. Your Thai borrower will own nothing. He'll be as poor as the day he made the first payment. His payments will have been nothing but a straightforward transfer of his wealth to a bank and multi-national corporation. It's mirrors and beads to the redskins stuff.

as some one who lost his shirt in the "secured" lending market I can attest that a secure loan can quickly become unsecured when a property goes upside down and enters the distresed REO market

First the lender must pay court an lawyer costs to foreclose then the property has to be sold in the distressed REO , market for a fraction of its value and amount owed, the property has to be maintained, and peoperty taxes must be paid then a Sales commission must be paid etc

Though I agree there is a big difference as to the type pf personal debt

Cars are to a certain degree a desirable debt, as they are durable goods, and increase productivity.