Thai education staff sinking in debt seek a lifeline

[webfact]

Education staff sinking in debt seek a lifeline
VISARUT SANKHAM,
KETKARN BOONPEN
THE NATION

BANGKOK: -- DESPITE HIS Bt46,000 salary, each month 50-year-old schoolteacher Chai (not his real name) has only Bt3,000 left to cover personal expenses after all his debts are paid.

His Bt6.8-million debt is owed to five sources: a Bt3-million loan with the Government Savings Bank (GSB), a Bt3-million loan with the Teacher Savings Cooperative, a Bt400,000-loan from the Government Housing Bank, and a Bt400,000 loan from Krungthai Bank.

He said the loans were to cover the cost of his own education, his children's tuition fees and mortgage.

Chai has to borrow money from friends to survive, or if he is lucky he gets extra money from work.

He, therefore, welcomed the recent proposal by GSB for the Education Ministry to allow teachers and other education personnel to use Bt400,000 for debt repayment out of the Bt900,000 their families get when they die.

"I agree with such an idea being implemented, even though it would lift my financial situation only just a bit. But at least I could benefit from that money before I die," he said.

A 60-year-old retired teacher said her debt burden totalled Bt7.7 million and came from a Bt3-million loan with the Welfare Promotion Commission for Teachers and Education Personnel, a Bt1.7-million loan from GSB, a Bt1-million loan from Krungthai Bank, a Bt600,000-loan from the Teacher Savings Cooperative, and a Bt700,000-loan from the Government Housing Bank.

Despite receiving Bt30,000 a month, it is Bt20,000 less than what she needs. So she struggles doing business here and there to make ends meet. "I think it would be a great idea to implement such a proposal [bt400,000] to help teachers like me, even though it would help just a bit," she said.

The GSB made the proposal in a bid to reduce its risk of non-performing loans, according to Education Ministry permanent secretary Kamjorn Tatiyakavee. The proposed deduction would be part of the conditions of a loan application, said Kamjorn following Monday's meeting with GSB president and chief executive Chatchai Payuhanaveechai.

Kamjorn revealed that some 5,000 teachers had so far registered for GSB's debt-restructuring programme. There are 13,405 teachers and other education personnel in a "critical state" of debt with GSB after failing to pay debt instalments for three months in a row and were facing lawsuits.

Some 7,000 debtors would face court soon if they continued to avoid contacting the bank, Kamjorn warned.

It was reported that 460,000 teachers and other educational personnel have borrowed some Bt470 billion from GSB.

Kamjorn said the ministry would soon adjust the criteria of the Office of the Teacher Civil Service and Educational Personnel Commission's revolving fund loans in an effort to solve teachers' debt problems.

He said the fund provided up to Bt200,000 per teacher for debt relief. The ministry will amend the criteria so applicants can borrow only from GSB for debt refinancing, he added.

People working in the education sector reportedly have a combined debt of Bt1.2 trillion - Bt700 billion of which is owed to cooperatives and other sources.

In an attempt to solve this issue, Education Minister General Dapong Ratanasuwan last week ordered Kamjorn to find clearer details of the debt situation and separate teachers from other education personnel debtors because the aid provided would be different for each groups.

Dapong also told Kamjorn to speak to the GSB and the Teacher Savings Cooperatives to discuss the criteria for loans and possible solutions.

Source: http://www.nationmultimedia.com/national/Education-staff-sinking-in-debt-seek-a-lifeline-30273800.html

-- The Nation 2015-11-27

[selftaopath]

I'd say these indebted teachers ought to take a math course.- better yet how to delay instant gratification. But if they decrease their monthly bills (by govt. hand outs) they'll trade in their current automobiles for newer/fancier/more expensive ones. The learning curve here is ?????? .... well it's "something."

[harada]

OK try this, Financial Planning.

[puukao]

i must confess....i owe 3,425,642 baht with 23% interest

let me pick up on the letters........"Dear Hansum Man, you owe us......"

[colinneil]

What a joke teachers cannot budget!!

Maybe if they stopped buying fancy cars/ homes just to make show to people, and go back to school to learn !! SIMPLE MATHS !!

[Jessi]

OK try this, Financial Planning.

Oh please, this is Thailand we are talking about.

[mike123ca]

I can't believe Thai banks would lend money to someone who is so far in debt.

[Jessi]

Its all about showing FACE. New cars etc etc the list just goes on.

This FACE thing in Thailand sure gets them into a lot of trouble, they kill each other over it.

[apetley]

My Thai sister in law is a teacher here and I also have several friends who are teachers in Govt schools. For years I have been astonished at how easy it is for them to obtain soft loans from the Govt and banks with seemingly no checks as to whether they can actually afford the repayments.

[z42]

46k baht as a Thai teacher is bloody good going. Can anybody shed any light on what these huge loans teachers get are actually for.

I read the article and it talks about mortgage and tuition fees for kids. But why exactly are people needing govt loans for this kinda stuff? Isn't that what a salary is for???

Still shocked at their salaries though. Very very few i have seen genuinely deserve close to those sums as most of their time at work is spent eating, sleeping, or playing on fb

[Seastallion]

I can't believe Thai banks would lend money to someone who is so far in debt.

The inability for the debtors to budget properly is one side of it. The stupidity of the banks in handing out money to people who can't repay it is another side of it.

[selftaopath]

46k baht as a Thai teacher is bloody good going. Can anybody shed any light on what these huge loans teachers get are actually for.

I read the article and it talks about mortgage and tuition fees for kids. But why exactly are people needing govt loans for this kinda stuff? Isn't that what a salary is for???

Still shocked at their salaries though. Very very few i have seen genuinely deserve close to those sums as most of their time at work is spent eating, sleeping, or playing on fb

Yes! And I know "teachers" who only work (lol - well not really) 12-14 hours a WEEK.

[selftaopath]

I can't believe Thai banks would lend money to someone who is so far in debt.

The inability for the debtors to budget properly is one side of it. The stupidity of the banks in handing out money to people who can't repay it is another side of it.

But do these banks ever offer loans to retired foreigners who can prove income that far exceeds those of most Thais? I think not.

[trogers]

Goes to show - Education staff remains uneducated!

[worgeordie]

They already owe massive amounts,to the Teachers benevolent fund,

(or whatever it is called),the problem is too many think been a teacher

you are nearly in the HiSo bracket,and overspend to create this image,

regards Worgeordie

[DrTuner]

Sell the new car, iPhone and move out of the mansion.

[Inn Between]

Everybody involved is at fault here -- the lenders, the borrowers, and a lack of government policy.

The teacher who is featured in the article wants to live a 100K/month lifestyle on less than 1/2 those earnings, and the lending institutions aren't doing any realistic calculations to determine his ability to repay what he borrows. And we can't ignore government over the years who have turned a blind eye to this obvious problem by not imposing some sort of regulations.

Edited November 27, 2015 by Inn Between

[Seastallion]

They already owe massive amounts,to the Teachers benevolent fund,

(or whatever it is called),the problem is too many think been a teacher

you are nearly in the HiSo bracket,and overspend to create this image,

regards Worgeordie

That's exactly right. My wife is a teacher (and gets 15000 per month for 50 hour weeks including 24 hours class time!) and scoffs at her colleagues who all buy cars and the latest phones, and go out to expensive dinners.

She says what you say: That they need to keep up appearances, and she thinks they are stupid.

[Prbkk]

My Thai sister in law is a teacher here and I also have several friends who are teachers in Govt schools. For years I have been astonished at how easy it is for them to obtain soft loans from the Govt and banks with seemingly no checks as to whether they can actually afford the repayments.

Yes, one of the great contradictions in the banking system. Thai, in debt, no problem for another loan even if it leaves you with nothing. Farang, with money and want a real credit card...forget it, don't even ask.

[waldroj]

I feel for these people, their situation is dire, and their future is very grave indeed.

Whilst this post focuses on the plight of a large number of teachers, it fails to shed light on the far more widespread problem facing many Thais today.

Simply being critical of their financial-management skills overlooks the significant part that Thai culture plays in this problem. Especially, the attitude of 'sanuk' and 'mai bpen rai'.

A nation that is fatalistic, and willing to accept that their lot in life is preordained, is more likely to be very blasé about money.

Private debt in Thailand is an insidious problem that government would be wise to treat seriously!

Unfortunately, little will probably be done, as history has shown that elite Thais have always disapproved of welfare. Favouring charity as the means of helping the needy, thus maintaining the social power over the recipients.

[oneday]

There is fault on both sides of this familiar scenario played out all over Thailand every day. The teacher is obviously pretty dim-witted or just greedy to not understand how much he was borrowing, how much he would have to repay and how much would be leftover.

The government and banks are remiss in loaning money to a person so deeply in debt already. No sympathy here.

Just like a local politician who was a good friend of my wife's family. He spent more money than he had to campaign for his re-election and lost. He then had to go back to all his friends and ask for anything they could give to help him pay off his debt. Most people in Thailand feel lots of "greang jai" towards a person like this, especially if he has been good to them, so they go broke giving them their hard earned money, a measly few thousand. He even got my wife's mother to give 5,000 that she desperately needed to pay her medical bills fighting cancer which ended her life a few months later.

The people here are like children when it comes to money. No one ever thinks of the future or the consequences.

[taff33]

Back in the uk it's called keeping up with the Jones's

[lujanit]

Something else is going on here also. I know of a woman in the Buriram who 'loans' money out to only teachers and other government employees. She charges up to 5% interest per month depending on how large the borrowed sum is. She had a deal with the people who pay the monthly salary. They deduct a certain sum from the salary in exchange for a 1% fee.

It is so easy for people in debt yet on a monthly salary to get money from loan sharks. In the end the interest becomes more than the principal. Truly a sad situation but these people make their own misery.

[Traveling Sailor]

OK try this, Financial Planning.

Well, your post would imply that these teachers know how to plan. While there may be a Thai word for "plan", most Thais do not understand the concept. And, the Thai education system does not contain any classes that would teach a student the basics required to understand the "plan" concept. The only thing these teachers will be able to "understand", is a swift kick in the butt and a promise that if they don't change their ways, they will lose their teaching job and they and their family will be turned out onto the street. That might get their attention, but no guarantee. Dumb is as dumb does. And, shame on the banks for approving the loans.

[jaywalker]

46k baht as a Thai teacher is bloody good going. Can anybody shed any light on what these huge loans teachers get are actually for.

I read the article and it talks about mortgage and tuition fees for kids. But why exactly are people needing govt loans for this kinda stuff? Isn't that what a salary is for???

Still shocked at their salaries though. Very very few i have seen genuinely deserve close to those sums as most of their time at work is spent eating, sleeping, or playing on fb

46K THB/month = about $7.50 per hour USD. (46K THB = $1,285.64/ 30 days X 7 day /40 hours a week = $7.50 per hour).

If somebody does not have enough brains to earn more than that (EARN = provide value in exchange for financial rewards), what business do they have teaching?

I'm not putting anybody down here, just saying, it's no wonder they eat/sleep/play at work.

I know many nationalities read this forum, so here's a breakdown of a per hour rate:

GBP 4.96

AUD 10.36

EUR 7.06

Once again, I'm not making any judgements here, but those wages are small.

As for the teacher's budget habits, once again, if they cannot create a budget to live on such a low wage, what business do they have being teachers????

[jacky54]

I think he left a few things out such as mia noi expenses

[onni4me]

1. They have been getting these soft loans every now and then from previous governments. Most seem to buy cars, iPhones and so on. I see a lady teacher almost every day and she has 3 cars. One for husband and two for her private use. No kids. I wonder if they think that these loans never have to be paid back since when they start complaining like in this case, they will be promised more?

2. Giving your kids a proper education (and "securing" them a better position) is expensive in Thailand. Just some degree can cost 500000 - 1 million Baht and your salary will start somewhere like 15000 Baht a month. One can just count how many years goes to pay back something like that and trying to survive. Thailand does not care about it's citizens. Education is below what one can get even in Vietnam or something like Burma where they at least learnt to speak English.

3. Some of the money is spent in "businesses" like motel or a food shop without much previous experience running something like that. Against many people's expectations, it is very hard to make money here loaning money for business. I have invested myself and return is sometimes below 7% on invested money. One can count whether or not a loan could be serviced on that sort of ROI. In my opinion, very hard.

4. Attitudes and face. I want, I need and I can't live without showing someone I can afford things even I can't. And then they blame the bank that loaned them money...

[casualbiker]

46k baht as a Thai teacher is bloody good going. Can anybody shed any light on what these huge loans teachers get are actually for.

I read the article and it talks about mortgage and tuition fees for kids. But why exactly are people needing govt loans for this kinda stuff? Isn't that what a salary is for???

Still shocked at their salaries though. Very very few i have seen genuinely deserve close to those sums as most of their time at work is spent eating, sleeping, or playing on fb

46K THB/month = about $7.50 per hour USD. (46K THB = $1,285.64/ 30 days X 7 day /40 hours a week = $7.50 per hour).

If somebody does not have enough brains to earn more than that (EARN = provide value in exchange for financial rewards), what business do they have teaching?

I'm not putting anybody down here, just saying, it's no wonder they eat/sleep/play at work.

I know many nationalities read this forum, so here's a breakdown of a per hour rate:

GBP 4.96

AUD 10.36

EUR 7.06

Once again, I'm not making any judgements here, but those wages are small.

As for the teacher's budget habits, once again, if they cannot create a budget to live on such a low wage, what business do they have being teachers????

This is Thailand and the reference is a Thai person. 46k baht is a reasonable wage for a Thai person and if budgeted correctly would go further than 3 times that amount in the UK or Europe.

[ratcatcher]

Back in the uk it's called keeping up with the Jones's

More likely the Sharmas, Kapoors and Singhs.

Unfortunately,the Joneses have joined the welfare lines.

[ratcatcher]

Back in the uk it's called keeping up with the Jones's

Dele

Edited November 27, 2015 by ratcatcher