Credit card spending continues to expand despite sluggish Thai economy

[webfact]

Credit card spending continues to expand despite sluggish economy

BANGKOK, 17 June 2015 (NNT) – Credit card spending continues to expand despite the slugging economic recovery, according to Krungthai Card Public Company Limited (KTC).

According to Natchanan Kengluecha, KTC's executive vice president for distribution business, since the beginning of the year, monthly spending through KTC cards has increased from an average of close to 6,000 baht per month per customer to some 8,000 baht per month per customer.

The 11% expansion was higher than the 8% average increase within the credit cards industry. This was despite the fact that less leniency is now involved in the approval process for new credit cards, due to the high level of household debt and heightened overall debt shouldered by customers.

Ms. Natchanan indicated that non-performing loans at KTC stood at 2.4%, 1.6% of which could be attributed to credit cards and the rest was attributable to personal loans. The figures were lower than industry average.

For the latter half of 2015, KTC will emphasize the expansion of its customer bases in major cities up-country as well as in areas of economic significance along the border. The target is to acquire another 400,000 customers.


-- NNT 2015-06-17

[Mango Bob]

Every time I go shopping at Big C they are always making purchases big or small with a credit card. It's really no different that in the US. The only smart was to use a credit card is to have the cash to pay the total off each month.

[HeijoshinCool]

Credit card spending continues to expand despite the sluggish economy, according to Krungthai Card Public Company Limited (KTC).

Here's a nugget from Finance 101, Krungthai financial whizzes:

The credit card spending is not expanding despite the sluggish economy, rather because of it.

This is what an MBA in Thailand will get you.

[webfact]

Thais still spend more via credit cards



BANGKOK: -- Despite the sluggish economy, spending by Thai people via credit cards remained high with average spending per person per month rising to 8,000 baht from 6,000 baht, according to a leading credit card operator.

Krungthai Card Public Company Limited (KTC) says since the beginning of the year, monthly spending through KTC cards has risen from an average 6,000 baht per month per customer to some 8,000 baht.

This represented a 11% growth, and higher than the 8% average increase within the credit cards industry.

KTC said the high spending continued despite of stricter measures are now involved in the approval process for new credit cards due to the high level of household debt and heightened overall debt shouldered by customers.

It says its non-performing loans stood at 2.4%, 1.6% of which were attributed to credit cards and the rest was personal loans.

But the figures were lower than industry average.

Source: http://englishnews.thaipbs.or.th/thais-still-spend-more-via-credit-cards


-- Thai PBS 2015-06-17

[Cpkt8]

Having credit cards is not a good thing. Credit card= future money.

Using cash or debit card to pay for your expenditure is still the best. That way you are in better control of your spendings.

[cmsally]

Most likely used to pay for necessities because of the dive in the economy. Even people without an MBA can see that.

[billd766]

Most likely used to pay for necessities because of the dive in the economy. Even people without an MBA can see that.

Yhe only problem I can see with that is that you are racking up bigger debts and will need MORE money to pay them off in the future and you STILL need the money to pay for necessities. So you will be paying more for the credit and leaving less for the necessities.

What will you do when the credit card maxes out and perhaps 30,40 or even 50% of your income is spent on credit card repayments?

Even people with or without an MBA can see that?

[eddie61]

cheaper cute small cat for the boys coming to a place near you

[nithisa78]

I will talk to my Mrs. She is the leader of credit card spenders. Dear woman.

[nithisa78]

Every time I go shopping at Big C they are always making purchases big or small with a credit card. It's really no different that in the US. The only smart was to use a credit card is to have the cash to pay the total off each month.

Right. The same way that governments do.

[Balance]

Credit card spending continues to expand despite the sluggish economy, according to Krungthai Card Public Company Limited (KTC).

Here's a nugget from Finance 101, Krungthai financial whizzes:

The credit card spending is not expanding despite the sluggish economy, rather because of it.

This is what an MBA in Thailand will get you.

You beat me to it. The chief economist at the bank should loose his/job tomorrow. However the message makes sense if you agree that the banks welcome people who spend more and as the balance goes up I will bet the minimum payment goes down, but I do not know this for sure. Bottom line people with high balances that do not pay the card off are the golden geese of the banking system.

I would be interested to know what the personal bankruptcy laws are like here and if real property can be foreclosed on to satisfy consumer debt. Anyone know? If so, there a real s.it storm coming that will make 97 look like a walk in the park.

[HeijoshinCool]

Credit card spending continues to expand despite the sluggish economy, according to Krungthai Card Public Company Limited (KTC).

Here's a nugget from Finance 101, Krungthai financial whizzes:

The credit card spending is not expanding despite the sluggish economy, rather because of it.

This is what an MBA in Thailand will get you.

You beat me to it. The chief economist at the bank should loose his/job tomorrow. However the message makes sense if you agree that the banks welcome people who spend more and as the balance goes up I will bet the minimum payment goes down, but I do not know this for sure. Bottom line people with high balances that do not pay the card off are the golden geese of the banking system.

I would be interested to know what the personal bankruptcy laws are like here and if real property can be foreclosed on to satisfy consumer debt. Anyone know? If so, there a real s.it storm coming that will make 97 look like a walk in the park.

.

Don't know about credit card collection, but a woman down the street from where I lived stopped making payments on her house over four years ago, and is still enjoying its use.

This is in Rhek Thum, a far cry from a city, but the bank is not doing anything to get her out, as they say they will have a hard time selling it, and realize its better to have it occupied, than empty.

[gandalf12]

Having credit cards is not a good thing. Credit card= future money.

Using cash or debit card to pay for your expenditure is still the best. That way you are in better control of your spendings.

There is nothing wrong with credit cards if, and only if you know how to use them. I have one and when I use it, which is not often, I pay it off immediately. Trouble is, and this isnt limited to Thailand as most countries suffer from it, is that the card companies give cards when they know the person doesnt really have the funds to repay thee balance.

[coulson]

I get shocked when I learn about the amount of debt amongst the working post grad's and the amount of promise/ visa/ loan's they managed to get their hands on unsecured. No clue about interest and when the inflation goes further down the tube I hope they all default and the banks get stuffed. This is one area Thailand has learned little from the world.

[Cpkt8]

Having credit cards is not a good thing. Credit card= future money.

Using cash or debit card to pay for your expenditure is still the best. That way you are in better control of your spendings.

There is nothing wrong with credit cards if, and only if you know how to use them. I have one and when I use it, which is not often, I pay it off immediately. Trouble is, and this isnt limited to Thailand as most countries suffer from it, is that the card companies give cards when they know the person doesnt really have the funds to repay thee balance.

You are probably one of the minority who are in control. Yes it's not only in Thailand, other countries as well.

[Cake Monster]

There really is no hope for these people.

A banking system that sees an increase from an avg 6K baht PM spending to 8K baht PM as an 11% increase ????

And a borrowing public with little, or no financial awareness of the consequences due to spending money that they have little. or no hope of repaying.

Nothing has been learned from the mess the wider world is still tying to sort out.

[Robby nz]

Farmers and taxi drivers who had never had them before were given credit cards probably with little or no idea of the consequences of using them.

This was supposedly to help them out financial trouble.

Presumably they are still using them although by now they should have learnt of the high interest charged and the need to pay back what they have booked up.

[Gunna]

Having credit cards is not a good thing. Credit card= future money.

Using cash or debit card to pay for your expenditure is still the best. That way you are in better control of your spendings.

There is nothing wrong with credit cards if, and only if you know how to use them. I have one and when I use it, which is not often, I pay it off immediately. Trouble is, and this isnt limited to Thailand as most countries suffer from it, is that the card companies give cards when they know the person doesnt really have the funds to repay thee balance.

I totally agree .

Credit cards are dangerous in the wrong hands, which the banks love.

The CC company and banks must hate me as for 25 years I have fully paid off the balance every month.

But they do love the 1-2% Merchant fee they receive every time I use it.

Unusually I have a CC with a credit limit of 5 times my monthly income due to using it for my business many years ago.

I could get the limit reduced, but I keep it incase of a medical Emergency - cheaper than paying monthly medical insurance

[maidee]

8000 baht a problem ?

as a farang, the only way i could get a CC with the bank where i hold millions of savings

was to lock 100.000 baht that i could not touch, just as a guarantee

and my spending is limited to 90.000

[i claudius]

8000 baht a problem ?

as a farang, the only way i could get a CC with the bank where i hold millions of savings

was to lock 100.000 baht that i could not touch, just as a guarantee

and my spending is limited to 90.000

I had a similar experience,so hard for us to get a card ,yet my son who is in university and gets an allowance transferred from my account walks in and gets one straight away,crazy Thailand