webfact Posted August 12, 2019 Share Posted August 12, 2019 Thais borrow early and get trapped in a cycle of debt Thais, nowadays, are indebted from an early age, and the level of their debt is maintained even as they approach retirement. A study by the Bank of Thailand reports that Thais get into debt in their 20s and tend to borrow more as they age. It is not surprising, therefore, that Thailand’s household debt has steadily increased to 78.6% of the country’s gross domestic products (GDP), or Bt12.8 trillion in the fourth quarter of last year, according to figures from the National Economic and Social Development Council. By comparison, household debts in Thailand averaged 49.89% of GDP from 1991 to 2018. Between 2008 and 2012, the figure rose 12.8% per year, and its size, relative to GDP, surged from 56% to 77%. Thailand is now a top-ten highest household debt country among 89 countries worldwide and third highest among 29 Asian countries. Full story: https://www.thaipbsworld.com/thais-borrow-early-and-get-trapped-in-a-cycle-of-debt/ -- © Copyright Thai PBS 2019-08-13 Follow Thaivisa on LINE for breaking Thailand news and visa info Link to comment Share on other sites More sharing options...
RichardColeman Posted August 12, 2019 Share Posted August 12, 2019 I think we can all see the signs that Thailand is going to really have it hard soon, and once those borrowers start being laid off as there's nobody to export too and the tourists are not coming or spending that debt is going to be near the 90% mark pretty quickly as the previous years they had reliable income streams Link to comment Share on other sites More sharing options...
dcnx Posted August 12, 2019 Share Posted August 12, 2019 The music will stop eventually. I’m absolutely shocked to hear people making 9000 - 15,000b per month can’t afford a new car and the latest iPhone. Link to comment Share on other sites More sharing options...
leeneeds Posted August 12, 2019 Share Posted August 12, 2019 Same for all the world where credit is offered by institutions, bait the hook, and reel in the the ones who bite, going with out is not in a lot of peoples vernacular, when they should be reading the fine print and thinking, nothing is free. Link to comment Share on other sites More sharing options...
leeneeds Posted August 12, 2019 Share Posted August 12, 2019 51 minutes ago, RichardColeman said: I think we can all see the signs that Thailand is going to really have it hard soon, and once those borrowers start being laid off as there's nobody to export too and the tourists are not coming or spending that debt is going to be near the 90% mark pretty quickly as the previous years they had reliable income streams As you say, always borrow more from the Chinese great rates on offer, when the government keeps showing the blasé attitude to going with out , really a poor lesson being shown to its people. Link to comment Share on other sites More sharing options...
ezzra Posted August 12, 2019 Share Posted August 12, 2019 Inherently, Thais mentality is 'Let's spend now and think how to repay it later' are also bad at money managements, loyalty and diligence to a workplace not to mention honesty, plus their family commitments to help each other at all time, so no wonder most thais are cashless and wanting, and the never ending chase for luxury items puts them in the hock even further... Link to comment Share on other sites More sharing options...
Cadbury Posted August 12, 2019 Share Posted August 12, 2019 1 hour ago, webfact said: Thailand is now a top-ten highest household debt country among 89 countries worldwide and third highest among 29 Asian countries. And the government is hell bent on delivering a stimulus package which will include easier loan access for workers, small business and farmers. That proves they don't give a toss about the terrible household debt situation. Added debt for these people is just a means to and end to get the economy stimulated. They don't care about the personal damage it does to the lives of people. As it happens the man who appointed himself to manage the economy is the same man who yesterday expressed his faux concern for low income people; the one's who will be tempted into taking the easy loans in his stimulus package. What does the National Economic and Social Development Council think of that? Link to comment Share on other sites More sharing options...
PatOngo Posted August 12, 2019 Share Posted August 12, 2019 The cost of face! It's an expensive must have. Link to comment Share on other sites More sharing options...
gunderhill Posted August 12, 2019 Share Posted August 12, 2019 Seems like im the last generation not to fall into the "stupidity trap" of borrowing when saving for something before buying it, which made it all the more enjoyable when you finally got it. I dont like borrowing for ANY reason and after 18 yrs old never did except £15k for a house back in the mid 1990's and even then the bank was reluctant ot lend such a small amount. People seem to think everythings easy these days, life really IS too easy, they all need a good kick to let them see it isnt. Link to comment Share on other sites More sharing options...
gunderhill Posted August 12, 2019 Share Posted August 12, 2019 5 minutes ago, PatOngo said: The cost of face! It's an expensive must have. The cost of stupidity. Link to comment Share on other sites More sharing options...
gunderhill Posted August 12, 2019 Share Posted August 12, 2019 11 minutes ago, Cadbury said: think youre mistaken???? Link to comment Share on other sites More sharing options...
gunderhill Posted August 12, 2019 Share Posted August 12, 2019 1 hour ago, RichardColeman said: I think we can all see the signs that Thailand is going to really have it hard soon, and once those borrowers start being laid off as there's nobody to export too and the tourists are not coming or spending that debt is going to be near the 90% mark pretty quickly as the previous years they had reliable income streams not only that but with their mental attitude it "wont be their fault" thats when the shit will really hit the fan as its "who can we blame" when the rioting will start and farangs will be a nice target. Link to comment Share on other sites More sharing options...
Tayaout Posted August 12, 2019 Share Posted August 12, 2019 I paid my wife credit card. In exchange she had to surrender it to me. What is ridiculous is that she maxed it buying gold for her family. At least gold is up. ???? Link to comment Share on other sites More sharing options...
Tayaout Posted August 12, 2019 Share Posted August 12, 2019 15 minutes ago, gunderhill said: Seems like im the last generation not to fall into the "stupidity trap" of borrowing when saving for something before buying it, which made it all the more enjoyable when you finally got it. I dont like borrowing for ANY reason and after 18 yrs old never did except £15k for a house back in the mid 1990's and even then the bank was reluctant ot lend such a small amount. People seem to think everythings easy these days, life really IS too easy, they all need a good kick to let them see it isnt. I think the same but a lot of rich peoples don't. Link to comment Share on other sites More sharing options...
moontang Posted August 12, 2019 Share Posted August 12, 2019 12 minutes ago, gunderhill said: Seems like im the last generation not to fall into the "stupidity trap" of borrowing when saving for something before buying it, which made it all the more enjoyable when you finally got it. I dont like borrowing for ANY reason and after 18 yrs old never did except £15k for a house back in the mid 1990's and even then the bank was reluctant ot lend such a small amount. People seem to think everythings easy these days, life really IS too easy, they all need a good kick to let them see it isnt. me too, got a mortgage for 28,500 in 2001. Saw at least 20 terrible drivers on my soi, likely owing more than that On their empty trucks. Link to comment Share on other sites More sharing options...
faraday Posted August 12, 2019 Share Posted August 12, 2019 The way some people have posted on this thread, is as if there aren't Credit cards/very high interest loans/scratch cards/ sub prime mortgages in Farangistan. But then by conveniently ignoring those facts, it gives some the opportunity to deride those 'greedy thais'. Link to comment Share on other sites More sharing options...
gunderhill Posted August 12, 2019 Share Posted August 12, 2019 2 minutes ago, faraday said: The way some people have posted on this thread, is as if there aren't Credit cards/very high interest loans/scratch cards/ sub prime mortgages in Farangistan. But then by conveniently ignoring those facts, it gives some the opportunity to deride those 'greedy thais'. is it not a "Thai" forum? Link to comment Share on other sites More sharing options...
faraday Posted August 12, 2019 Share Posted August 12, 2019 10 minutes ago, gunderhill said: is it not a "Thai" forum? Comprehension not your strong point, Mr Underhill?? Link to comment Share on other sites More sharing options...
gunderhill Posted August 12, 2019 Share Posted August 12, 2019 2 minutes ago, faraday said: Comprehension not your strong point, Mr Underhill?? clearly Link to comment Share on other sites More sharing options...
mok199 Posted August 12, 2019 Share Posted August 12, 2019 I watched yesterday as a family ( obviously very poor ) stopped at a roadside check point ( which is nothing more than a cash grab) was issued several fines , then a group of young thai males on loud scooters ,no helmets blasted through without stopping ....This Nation is out of control.... Link to comment Share on other sites More sharing options...
faraday Posted August 12, 2019 Share Posted August 12, 2019 9 minutes ago, gunderhill said: clearly Glad we agree on that. Here, have a banana as a consolation prize. ???? Enjoy your day. ???? Link to comment Share on other sites More sharing options...
brokenbone Posted August 12, 2019 Share Posted August 12, 2019 comes close to the american dream: buy a house that you cant afford Link to comment Share on other sites More sharing options...
PatOngo Posted August 12, 2019 Share Posted August 12, 2019 14 minutes ago, brokenbone said: comes close to the american dream: buy a house that you cant afford Or a gun! Link to comment Share on other sites More sharing options...
robblok Posted August 13, 2019 Share Posted August 13, 2019 1 hour ago, faraday said: The way some people have posted on this thread, is as if there aren't Credit cards/very high interest loans/scratch cards/ sub prime mortgages in Farangistan. But then by conveniently ignoring those facts, it gives some the opportunity to deride those 'greedy thais'. I work with a debt help organisation (not debt collectors but the kind that negotiates with all the creditors to consolidate debt and get a favorable payment plan) in my country I file taxes for those in debt. Its amazing how many are in debt so its certainly not a Thai thing no matter how much the resident foreigners want to make it so. I see people of all kinds in debt even with high incomes. But majority in debt is those on benefits. Link to comment Share on other sites More sharing options...
gunderhill Posted August 13, 2019 Share Posted August 13, 2019 1 hour ago, faraday said: Glad we agree on that. Here, have a banana as a consolation prize. ???? Enjoy your day. ???? where do i stick it though? ps "G......Underhill"???? Link to comment Share on other sites More sharing options...
Joe Mcseismic Posted August 13, 2019 Share Posted August 13, 2019 From my own observations. A Thai person wants to borrow 10,000 Bt. Interest is 5% per month. The mindset is "I only have to pay 500 Bt a month", which is easily do-able. There is no thought whatsoever about paying back the principle. Link to comment Share on other sites More sharing options...
legend49 Posted August 13, 2019 Share Posted August 13, 2019 so whose fault they are in debt? Are farangs to be blamed for that too? Link to comment Share on other sites More sharing options...
30la Posted August 13, 2019 Share Posted August 13, 2019 If this bubble bursts ... goodnight guys ... Link to comment Share on other sites More sharing options...
geoffbezoz Posted August 13, 2019 Share Posted August 13, 2019 43 minutes ago, Joe Mcseismic said: From my own observations. A Thai person wants to borrow 10,000 Bt. Interest is 5% per month. The mindset is "I only have to pay 500 Bt a month", which is easily do-able. There is no thought whatsoever about paying back the principle. Which is 60% per year simple interest for these loan sharks, something the Thai government is attempting to stop Link to comment Share on other sites More sharing options...
Joe Mcseismic Posted August 13, 2019 Share Posted August 13, 2019 2 minutes ago, geoffbezoz said: Which is 60% per year simple interest for these loan sharks, something the Thai government is attempting to stop There is already a law that states the maximum interest allowed is 15% per annum. Very hard to enforce............so, it isn't. Link to comment Share on other sites More sharing options...
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