Debt Problems Drive 30,000 Thais To Join Special Club For Help

[Thaising]

Many Thais are falling quickly into debt, after applying for easily available loans and credit cards.

Some debtors are now turning to special clubs that help those in financial trouble.

One hard luck club in Bangkok has over 30,000 registered members, all of them debtors.

Some members meet weekly to discuss how to repay their debts, while others prefer to get tips online on how to clean up their financial messes.

One lady member said: "This club has financial and law consultants who have experience with debts from loans and credit cards. So I know I am getting the right advice."

Pairoi Poksupat, Lawyer, said: "I just use my knowledge to inform people what their rights are under the law and how to find a way out (of debt)."

Run by volunteers, the debt club is among several in Bangkok which act as a lifeline to those paralysed by their financial problems.

But other debtors are not so lucky.

Many of those who cannot pay up find themselves at the mercy of debt collectors - once known for their strong-arm tactics which included physical violence.

However these days, they are more inclined to resort to less criminal methods, such as psychological pressure.

One male debtor, for instance, was publicly humiliated.

He said: "Debt collectors followed me to my workplace and condemned me in front of my colleagues. They followed me home, disgracing me and shouting profanity at my family members."

With the aggressive promotion by banks and other lenders, more Thais look set to slip into the red.

Credit card spending has already grown almost 18 percent over last year, while the number of cards issued has risen some 14 percent.

Consumer debt, which currently stands at over US$4 billion, has been steadily increasing every year since the kingdom's recovery from the 1997 economic crisis.