Household debts rise to 10.57 trillion baht in first half

[Cake Monster]

The Credit Card defaults rising by 28% signals that the Thai consumer has now run out of all the borrowing options that were open to them.

The amount of Household debt in Thailand will bring the country to its knees, as there will be little or no " wiggle " room for the policy makers to act.

Be afraid - very afraid

[kerrysum]

We are sitting on a bubble economy.

1. Retirees invested their whole life savings in pension funds, mutual funds and in stock market and on holidays. All started collapsing now. No more holidays.

2. Middle class working for big companies and invested their savings in shares and all plunged now. Most of their wealth have been wiped out.

3. Giant capitalist invested on natural resources like oil, metal and rare earth commodities and waiting for the price going up depends on China's growing demand.

The concept is how long the machines can produce things when humans have no money buy and no people to spend the money ? We are all sitting on a false economy with bundle of papers called currency.

It is like everyone wanted to eat good and delicious food. But there is no one out there to work on fields to produce the food, and no one is ready to cook on hot stove but wanted to eat delicious food.

One day we all have to go back to the fields and work hard for our food, rather than counting the papers and numbers on the screen.

Totally agree with you opinion, people really need to wake up..... Think it is kind of the basics isn't it? Thank you for your post......

[kerrysum]

Let us call it interest only loans... Have family back home in the LOS, personally I do not get involved in it. It is called loan-sharking.... Some things just never change....

[billd766]

I'm not surprised about the credit card default level. Not sure what the usual borrowing rate is but Kasikorn charge 20% annual interest on their visa card. This has remained the same even after interest rates dramatically reduced. Admittedly people should use credit cards sensibly but many/most people borrowing that way think it is their own money and forget about paying it back with exorbitant rates. The customers are to blame but the banks must take a large proportion of the blame by allowing the distribution of the cards to people who really can't afford them, or understand the way they should be used. Admittedly is is a convenience which has to be paid for but the current interest rate does in no way reflect the current borrowing rates.

I have just done a quick Google search on Lloyd's Bank in the UK. I used to be a customer there a few years ago.

Their lowest rate but very tight parameters is just over 6.5% APR and their highest is 18.94% APR.

http://www.lloydsbank.com/credit-cards/low-rate.asp

http://www.lloydsbank.com/credit-cards/low-rate.asp

http://www.lloydsbank.com/credit-cards/platinum-long-balance-transfer.asp

[dannyman]

"all Thais will be rich after six months", pity it wasn't true, just "an election promise".

My wife reports that she's being approached for loans by local university-students, within weeks of their starting to study away from home, not a good sign.

you are a sad man

[dannyman]

I like that!

[farangmick]

Just one question - what is a nano-financing scheme as mentioned in the OP?

http://www.nationmultimedia.com/business/BOT-considers-nano-financing-for-grass-roots-peopl-30246202.html

Frightening. 30-35% interest doesn't need a fancy name. It's called loan sharking.

[farangmick]

Look at the scheme by the last government giving tax back on new cars as long as it was your first car. I ended up in England on a reasonable salary, but never considered buying a new car that would loose 20% as soon as I left the showroom. I have never known anyone in UK who could buy new first time. Great scheme for the Thai rich, who save when they buy cars for the kids as they started Uni, but strange policy for the redshirts, getting their supporters deeper in debt.