Thai workers still in heavy debt

[webfact]

Thai workers still in heavy debt



BANGKOK: -- As today is the International Labour and is observed on May 1 across the world, Thai workers also joined their colleagues around the globe in celebrating their special day with several activities.

But as celebrations go on, a sad and underlying fact remained unresolved, poverty of the workers.

The latest survey conducted by the Thai Chamber of Commerce has revealed worrying revelations that 94% of Thai workers remain in heavy debt and of these 60% are unofficial loans.

Umakamon Sinthornsurat, an academic with the Center for Economic and Business Forecasting at the University of the Thai Chamber of Commerce, released the findings carried out on workers in the country yesterday showing that no less than 13.3% earn less than 15,000 baht per month and 55% of this group earn between 15,000 – 30,000 baht per month.

More worryingly, 61.9% have monthly expenses between 15,000 – 30,000 baht which mean that they have only marginal savings.

Ninety four percent of workers are heavily in debt and of these 59.6% are unofficial or unregulated loans.

On average, this is amounted to a debt burden of 117,839 baht per household and will require around 7,300 baht payments every month.

The center has discovered that 31% of all loans were taken to cover daily expenses while 19.8% are loans taken to repay other pass due loans.

Most of these workers are asking help from the government to lessen the burden and want an increase in the minimum daily wage adjusted to 398 baht.

Furthermore, they also want this rate adjusted to 491 baht in the next three years.

Source: http://englishnews.thaipbs.or.th/thai-workers-still-in-heavy-debt


-- Thai PBS 2015-05-01

[LuckyLew]

Poor thai people have no money

Middle class spend all the earn

and the banks still handing out loans

POP

[trogers]

"The center has discovered that 31% of all loans were taken to cover daily expenses while 19.8% are loans taken to repay other pass due loans."

Goes to show how high a percentage of money earned has to go to debt repayments. Buried themselves to the nostrils and now risking losing whatever jobs they have.

[Bluespunk]

"The latest survey conducted by the Thai Chamber of Commerce has revealed worrying revelations that 94% of Thai workers remain in heavy debt and of these 60% are unofficial loans."

So pay them wages above and beyond subsistence levels.

Edited May 1, 2015 by Bluespunk

[trogers]

"The latest survey conducted by the Thai Chamber of Commerce has revealed worrying revelations that 94% of Thai workers remain in heavy debt and of these 60% are unofficial loans."

So pay them wages above and beyond subsistence levels.

Might as well say use taxes to pay off their debts so they need not be in such a plight. If taxes are not enough, use QE to buy over such debts.

And in the meantime, advertise that the State will do this annually for all of voting age, so please incur debts as much as possible.

Edited May 1, 2015 by trogers

[Bluespunk]

Decent wages might eliminate the need for or many to get into debt.

It will certainly take away the inevitability of it happening.

[trogers]

Decent wages might eliminate the need for or many to get into debt.

It will certainly take away the inevitability of it happening.

? like teaching an alcoholic in a liquor store...the sins of being drunk.

[Bluespunk]

Decent wages might eliminate the need for or many to get into debt.

It will certainly take away the inevitability of it happening.

? like teaching an alcoholic in a liquor store...the sins of being drunk.

If someone is given nothing but alcohol to drink, then what else but an alcoholic can they become.

[ExPratt]

They've been caught in Consumerist Circus haven't they. Phones , Tabs , Notes, Ipods all shit that they have been brainwashed into thinking they need and are foolish enough to get in debt for. I do feel sorry for them because they do not get a fair living wage in many cases

[trogers]

Decent wages might eliminate the need for or many to get into debt.

It will certainly take away the inevitability of it happening.

? like teaching an alcoholic in a liquor store...the sins of being drunk.

If someone is given nothing but alcohol to drink, then what else but an alcoholic can they become.

And who has been feeding them alcohol?

[OttoPollmann]

So, this Economic and Business University has also a statistic that shows how many percent of these workers really care about the future and how to handle with their real incoming?

It is fact; Thais don't have a common sense of money value.

Give them an incoming of 100K and on the middle of the month everything is spent.

That's the way they`re living. Nobody cares what will happen tomorrow. The answer is every time the same “May I'll die so for what I`ve to save some money”.

I can see this in the rural village I live. The purest of the pure driving the newest pickup truck. Every time I ask myself, how they could finance this with one crop of rice per year.

It is easy! They`re running with their land to Kasikorn Bank to lend some money! Without any plan how to pay back the loan plus interest. After a year the Bank will get the refund. Now they`ve to go to some lender and the big mess will start. On the end the pickup and the land is gone just for one week fame in the village.

[JAG]

Decent wages yes, but allied with sensible restrictions on credit. Won't help those already in debt, but may reduce it in future.

The banks have been making silly loans, maybe they will have to take the hit?

Edited May 1, 2015 by JAG

[poohy]

There are three houses sorry hovels near where I live all with brand spanking new pickups, families eating mama noodles and drinking Lao cao see them at the local shop daily, I cant help thinking possibly their poverty is due to their priorities

[Bluespunk]

Decent wages might eliminate the need for or many to get into debt.

It will certainly take away the inevitability of it happening.

? like teaching an alcoholic in a liquor store...the sins of being drunk.

If someone is given nothing but alcohol to drink, then what else but an alcoholic can they become.

And who has been feeding them alcohol?

I was extending your analogy.

You compared workers in debt to alcoholics in a liquor store. {Or at least I assumed that was what you meant}

My point was that the workers would not be in debt if they were paid decent wages.

[trogers]

Decent wages might eliminate the need for or many to get into debt.

It will certainly take away the inevitability of it happening.

? like teaching an alcoholic in a liquor store...the sins of being drunk.

If someone is given nothing but alcohol to drink, then what else but an alcoholic can they become.

And who has been feeding them alcohol?

I was extending your analogy.

You compared workers in debt to alcoholics in a liquor store. {Or at least I assumed that was what you meant}

My point was that the workers would not be in debt if they were paid decent wages.

Really? And you think the stats of 89% of households with debts are all from people earning 300 baht a day?

[butch333]

no plan for the future , live day per day . but need to have the last Iphone , the last Ipad , the nice car , gold , show the others all what they have . and spend all the time on the phone or internet . after that , they don't understand how to pay everything , all the credits . they don't need all of that . a salairy of 20.000bath is egal of a salairy of 2000euros for the européan workers , most of the workers in europe don't have more then 1300 euros per month and have to do with that , with much more qualifications , more professionalism and much more perfomance . personaly , i work for myself for quite 40 years in the construction , i never have more then 1700euros salary per month with more then 60 work per week not include the office work after my hours and all the risk with it ( bill not paid by customers , garanties , and and .... ) .

[seajae]

when my dad died we were all in school(5 of us), mum didnt work and we were not well off. Mum took out a day job and a night job, the 3 oldest of us did odd jobs to earn money, we didnt have any new clothes but second hand ones, we survived by doing it hard, no loans for anything. Our meals were not all that great either but we managed on what we could and waht mum could bring home from her work on weekends. It appears thais dont think like this, they all want the latest phones, big cars and all the other bits and pieces, It isnt due to what they earn but how they think, they need to realize face isnt all its cracked up to be, much better to live simply and survive, the good things will eventually come come if they do but not while they pay loans so they look good to everyone else while they suffer

[butch333]

don't spend what you don't have . spare money first and then buy . look the priorities too , get the last Iphone or the last Ipad is not a priority , think a bit for your future and spare money for the bad days . don't be scare to loose the face if you don't have the last of the last , it's not important . make plans before asking credits , to be sure you can pay for your credits , and take a look if you really need to buy maybe something you don't really need . think that you can loose your job , be sick , have accident , make plan for more then 2 days but for 5 years .

[Don Mega]

Decent wages might eliminate the need for or many to get into debt.

It will certainly take away the inevitability of it happening.

Yeah nah.

Guy at my work earns 12k per month, he had a perfectly fine pickup that he owned.

He sold that pickup to cover the deposit of a new one, repayments are 10k per month.

The finance companies are to blame for this as they should never have approved the loan.

Edited May 1, 2015 by Don Mega

[trogers]

Decent wages might eliminate the need for or many to get into debt.

It will certainly take away the inevitability of it happening.

Yeah nah.

Guy at my work earns 12k per month, he had a perfectly fine pickup that he owned.

He sold that pickup to cover the deposit of a new one, repayments are 10k per month.

The finance companies are to blame for this as they should never have approved the loan.

Nah...if you stop the finance company, the same critics would blame you for stepping on the rights of the poor to get financing...

[Jeremy50]

I have a seven year old Nokia smartphone, and just tracked down a new battery for it in Pantip, so it's good for another 3 years.

Take care of stuff, and wear it out, and you will never be poor. After all it's just 'sufficiency economy' a phrase much bandied about in Thailand 6 years ago, but never heard now.

[shirtless]

Yes the Thai workers are total consumers which have no regard for their future , maybe schools should educate these people on budgeting ., or simply avoiding the pressures of current day marketing ,I dont think this problem will be solved any time soon as long as face is involved.,

[connda]

It was just a couple of days ago that a news article in TV said that there is an estimated 200k to 600k shortfall in the labor force that needs to be filled. Which means bringing in low-paid immigrants to flood the labor market and drive average wages down meet the needs of a robust economy requiring additional labor. Now let me think here: There is a labor shortfall, which means it's a worker's markets, which means wages should be going up to attract the necessary labor. Hummm.

[connda]

"The center has discovered that 31% of all loans were taken to cover daily expenses while 19.8% are loans taken to repay other pass due loans."

Goes to show how high a percentage of money earned has to go to debt repayments. Buried themselves to the nostrils and now risking losing whatever jobs they have.

It's like a ponzi scheme: eventually it will implode under it's own weight. Much weeping and gashing of teeth as the banks demand to be 'made whole' by the government for their sub-prime loans. I don't even want to think of the war that happens between the have nots with no money and no jobs and the mafia that wants their pound of flesh from the 60% of the population who don't borrow from financial institutions.

What a world.....we do live in interesting times.

[tonray]

There are three houses sorry hovels near where I live all with brand spanking new pickups, families eating mama noodles and drinking Lao cao see them at the local shop daily, I cant help thinking possibly their poverty is due to their priorities

Mama noodles ? how dare they display such outrageous opulence and live high on the hog like that !

[thesetat2013]

They've been caught in Consumerist Circus haven't they. Phones , Tabs , Notes, Ipods all shit that they have been brainwashed into thinking they need and are foolish enough to get in debt for. I do feel sorry for them because they do not get a fair living wage in many cases

I agree! These people can afford to go out and buy a new car or Samsung phone or other gadget making sure it is top of the line and get themselves into huge debts thinking they will be able to make minimum payments until they find out they barely have enough to pay for food and rent. Responsibility for finances is the least in their thinking. I had an ex-gf who made 12000 a month and was doing OK with her finances. Then she got a bug up her butt that made her think a new car would be great. Payments were only 7000 a month. So even after she refused my advice she went and bought the car. She could not even afford gas to put in it. She sold all her gold and borrowed money just to make the down payment. Needless to say, I refused to fill her tank every 2 weeks and left her shortly afterwards. No thought for the future.. Just! I must have it now

[wabothai]

Nobody with little education can be blamed for not knowing or understanding the rules when borrowing money.

The loaning institutions should have the obligation to have the borrower understand the rules.

Unfortunately they care less, they make money, and make the figures look good.

The loan institutions are to be held responsible for the resulting problems Thailand is in now.

Every loan should be accompanied by a small booklet or folder explaining the rules in a simple way and not some fine print on the contract.

[Oziex1]

Consumerism is rampant everybody wants, marketing tells everybody you gotta have this and you gotta have it now!

Comments of an austere existence from the past as a good model for financial stability but it is from a time when credit was harder to get.

Live today worry later even mundane but useful items like a phone is a fashion statement, another credit crunch on the way?

[Assurancetourix]

My point was that the workers would not be in debt if they were paid decent wages.

You can continue to have a beautiful dream ...

Even they can have 30.000 baht a month they will arrive at the middle of the month with zero baht .

in Thailand, tomorrow doesn't exist .

[worgeordie]

Thais ,and many other people don't seem to realize the the first

priorities have to be a roof over your head,and enough food to fill

your belly everyday,

Its not a iPhone,new car,just to impress friends and neibours,

with low interest rates throughout the World,debt seems to be

increasing out of control,payday loan shops on every high

street in UK,fliers on every Telephone box here,then Governments

do not set a very good example to their populations,i wonder who,

corporation,country is holding all this debit, and as always the rich

get richer,and the poor get the shit end of the stick.

regards Worgeordie