Household debts of Thais alarm economists

[snoop1130 10,589]

Household debts of Thais alarm economists

By The Nation

 

 

The ratio of household debt to GDP has risen by 78.8 per cent meaning that Thai citizens have combined debts of Bt13 trillion debts, the second-highest in Asia, according to a recent seminar on the subject of household debt and homeownership organized by the Real Estate Information Centre of Government Housing Bank (GHB).

 

A massive 21 million are now in debt, with people under the age of 30 considered the most fragile group. Because of the money they owe, these millennials have less buying power and that is having a knock-on effect on the government's first-time house buyer project.

 

The seminar made the point that adolescents and new graduates are finding themselves in debt much too early in their lives. 

 

A senior adviser to the National Economic and Social Development Council, Jinanggoon Rojananan said that even though household debt in the second quarter of 2019 dropped by 5.8 per cent from the first quarter, the situation is still risky.

 

More than 50 per cent of debts are long-time real estate loans and another 30 per cent are made up of personal debts, credit card debts, and car loan debts. These are considered high risk because they are repayable in the short term and can easily turn into bad debts, which will affect requests for loans by first-time house buyers.

 

People aged between 26-30 years old are most likely to get into debt as a result of unmanageable home loans.

 

Sakkapop Panyanukul, a senior executive with the Bank of Thailand (BOT)'s Financial Stability Unit, noted that most Thais overspent and saved 15 per cent less money over the past five years resulting in less buying power while the director of the Finance Ministry’s Macroeconomic Analysis Division Pisit Puapan said he believed that the Thai economy would continue to slow as a result of lower investment. 

 

Consumers were encouraged to make financial plans and evaluate their needs before entering into more debt in the slowing economy.

 

Source: https://www.nationthailand.com/business/30377647

 

-- © Copyright The Nation Thailand 2019-10-22

Follow Thaivisa on LINE for breaking Thailand news and visa info

[Cadbury 16,606]

3 minutes ago, snoop1130 said:

Household debts of Thais alarm economists

Household debt doesn't seem to worry fat cat politicians who are trying desperately to pump prime the flagging economy with stimulus packages which include easy access government bank loans to workers, farmers and small business.

The message is clear.......borrow, borrow, borrow........spend, spend, spend! 

[PatOngo 40,914]

1 hour ago, snoop1130 said:

A massive 21 million are now in debt

You mean the married ones don't have 400,000 baht in the bank and the retired ones don't have 800,000......oh well!

[PatOngo 40,914]

1 hour ago, snoop1130 said:

More than 50 per cent of debts are long-time real estate loans and another 30 per cent are made up of personal debts, credit card debts, and car loan debts.

Don't forget to set aside another 3000thb for your GPS!

[PatOngo 40,914]

1 hour ago, snoop1130 said:

The seminar made the point that adolescents and new graduates are finding themselves in debt much too early in their lives.

But my new iPhone 11 is SOOOO cool!

[marko kok prong 7,751]

Reckon i may buy a heap of some of this debt,then if i see movement i will go short,did the same 2008/9 gotta tell i done okay know the market though boys can lose it all if you <deleted> up.

[Isaanbiker 6,934]

Another hub of aeeh..this time not a positive one. 

[Isaanbiker 6,934]

38 minutes ago, PatOngo said:

But my new iPhone 11 is SOOOO cool!

I've got two IPhones 11 from my son, I'd sell for a special price.

 

   Even when most Windows programs don't work with them, you've got a rotten apple on it. Go for it. Only Iphone holders are cool. 

[Isaanbiker 6,934]

52 minutes ago, PatOngo said:

Don't forget to set aside another 3000thb for your GPS!

  Promotion for only 4,999 baht. Iphones are cool, man.

 

Sell selling them with a <deleted>_y battery that's part of the phone, then claim that the customers need to buy a newer version of these phones. 

 

  And tell everybody that these phones are so special.

I love Iphones to death because they never work with any other app other than crappy ones from APPLE.

Edited October 22, 2019 by Isaanbiker

[PatOngo 40,914]

2 hours ago, snoop1130 said:

Household debts of Thais alarm economists

 

1 hour ago, marko kok prong said:

Reckon i may buy a heap of some of this debt,then if i see movement i will go short,did the same 2008/9 gotta tell i done okay know the market though boys can lose it all if you <deleted> up.

How many households do you reckon you'll buy?

[PatOngo 40,914]

4 minutes ago, Isaanbiker said:

I've got two IPhones 11 from my son, I'd sell for a special price.

 

I'm not cool enough, I got a Samsung!

[nickstav 1,431]

Maybe it would be prudent of the banks or private lenders to actually check on the buyers ability to repay what they will owe beforehand, which might save the poor consumer from getting into a situation that is drowning them. Not that I for a moment think that banks or private lenders have a heart, but bad debts are bad business for them too.

[overherebc 18,202]

29 minutes ago, PatOngo said:

I'm not cool enough, I got a Samsung!

Mine, this one I'm using, must be 8 or 9 years old and I can still make phone calls.

and post on here.

[PatOngo 40,914]

11 minutes ago, nickstav said:

which might save the poor consumer from getting into a situation that is drowning them.

BUT! I mut to hab dit, I mut to hab dat, mut to be cool!

[Matzzon 13,659]

And the bubble grow bigger and bigger and bigger.........pooooof!