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Teacher debt crisis: Three quarters owe 1.1 trillion baht - on average 3 million each

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18 hours ago, Elkski said:

Basically the only way they will ever be free from these loans is when they die.  But even then I'm not sure what happens to the car the house the land. Just imagine, the profit was made on this much money

I think the outstanding asset is repossessed and if there is any equity left, the repossessing organisation just keeps it as profit.

 

This is a most peculiar country, and small things like honesty, a lack of duplicity, and a sense of responsibility towards an unfortunate person simply do not exist. The only things that are important here are money, money and money in that order; this is a pretty depressing perspective on Thai life but it does seem consistent with all the observable facts.

 

I suppose it's a feature of the growth curve of primitive people that they have to go through a period of time during which they are comprehensively shafted, and generally ripped off at every opportunity. Being a member of the elites appears to bring certain advantages in this respect, which I guess is why they're so keen to remain elites.

 

Edited by ParkerN
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18 hours ago, seajae said:

This shows just how bad/stupid teachers are in Thailand, they are not capable of rational thinking and as several thais think that you dont really have to repay loans if you dont want to.  Teachers are meant to be smart but not here, they keep borrowing because they have a govt job and think they will be taken care of, maybe all teachers need to be taught basic economics, those approving the loans are just as bad, in any other country they would look at what you earn and have to pay out each time they are paid instead of just saying yes but in reality it is the teachers fault for wanting to live above their means. Time for the govt to stop bailing them out and have creditors seize personal property so that they learn they cannot just keep borrowing, we have had a few teachers over the years try to get us to loan them money but we refuse point blank because we know they will never pay it back, the lenders need to do the same thing or wear the defaulted loans

Do I detect a grudge against teachers? Most Thais new to using credit will over due the situation because not enough emphasis is placed on penalties of “borrowing money “. 

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And these teachers are teaching children at school. What can a child learn from them as they aren't able to manage their daily life!

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18 hours ago, Samuel Smith said:

And back in UK. most households are in debt far more than 3 million baht.  It's called having a 25 year mortgage to buy a house.  No mention in OP as to nature of the debt.

Possibly one nature of the debt is an expensive "flashy" saloon car "for show" and then struggle to repay the loan from their basic teacher's salary. Many teachers like this here in rural Issan.

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This same story comes up every year nothing has changed 🙄

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20 hours ago, ParkerN said:

 

I'm not sure about the rational thinking thing, but Thais in general aren't much good with debt, they will buy anything they want in order to appear or feelrich/powerful/important/whatever, and if they don't have the money, they'll borrow it. Not having image/face/barami is tragic for a Thai, the Thai culture strikes again. The amart here literally throw money at the serfs, knowing that the government will bail them out if push come to shove.

 

It's a real problem, and a good lesson would be for several amart to be bankrupted instead of bailed out by their mates in government. It won't happen of course, not while mad Uncle Too has so many good friends to whom he is beholden for his rise to power and to whom he owes money or favours. After all, he's done pretty well out of the coup skylark... so payback is only fair really. Quid pro quo.

And dont forget the  onslaught of Western Capitalist Consumer Culture deliberately designed through advertising to make a previously simple smiling mostly contented people discontented in wanting all the stuff we have but do not need just to keep up with the Jones's. They havent a hope in hell on the peanuts they earn! Not to mention that it is the antithesis of Buddhism and that it is destroying the environment Worldwide.

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Education, education, education, or, so ironically here, the lack of it.

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Most of these responses are absolutely assinine. You act like they have borrowed the money and <deleted> it all away in a gambling den.

 

I'm certain the bulk of it is on their homes. Many will have a car. Some of it might have gone for education.

 

Teachers get good pensions so long after 60 they can still pay down their debts.

 

CTFO

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19 hours ago, ThomasThBKK said:

money is so cheap these days

"These  days"  but there are  other days and when/if  rates  rise it  will be funny

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I wonder if this includes their houses as many teachers have like 500K to 1M in education debt alone already, similar amount for car and credit cards too. 
That would leave them with a 1M house only while the avg. cost is higher.

To not forget, many sold land they owned for cash before getting in debts too, so they lost more in total. Struggle must be real.
Plus interest adding up to the current figures over the next decades / informal loans on the dark side with sharks not known either.

Edit: Also wonder if it includes their partners debts, who might not be a teacher.

The comparison made to people in Europe having a mortgage here is quite silly, the house holds value and can be sold, so the actual debt is very small.
Here you often get difficulty selling it as it was over priced initially. To not forget the income is much higher, interest lower.
In terms of private loans, very hard, most people can't even get 5000 euro credit. Here it is super easy (similar to the USA with credit cards).

Edited by ChaiyaTH

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I’m not so sure I place a whole lot of “blame” on the financial institutions themselves...  so long as they properly disclosed the terms of their loans/products in advance, then I can’t really place a whole lot of blame on them.

 

yes, there is the idea of predatory lending, excessive interest rates and such.. but... from a base line idea, I hold that an adult is principally responsible for their own income/debt situations.

 

yes, cheap or easy credit does have risks ... I agree.. but in the end, cheap/easy credit is really only problematic for those who essentially mismanage it. 

 

What I guess surprises me a bit is that there isn’t better financial management taught in schools or even with the new government teachers before they are deployed into their respective schools.  I would have hoped that the civil service unit would have classes for their new members to teach them about their new reality... be that money management, retirement planning, any public sector benefits available, etc.

 

i get it that the initial salary is low (low is of course relative) but it IS (as I know it) fully disclosed to prospective teachers in advance.. so.. they did know this is the income stream they’d be locked into going forward.

 

to that end, I don’t really think it’s the banks nor governments “duty” to ”bail out” these folks.... now, from a national fiscal health perspective, having such a large percentage of debt held by one single class of creditor is worrysome from a potential default risk basis — I DO think the government must keep tabs on it- but I’m not a supporter of direct fiscal intervention in the matter at this point in time.

Edited by new2here

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54 minutes ago, new2here said:

What I guess surprises me a bit is that there isn’t better financial management taught in schools or even with the new government teachers before they are deployed into their respective schools.

Does this actually happen where you come from as it certainly never used to happen n the UK and I doubt that has changed much? 

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5 hours ago, Pravda said:

 

So who's really dumb here? A Thai teacher or expat who chooses to have their kid in a Thai school while this same kid is sucking on 200+++ quality AQI daily. 

 

At least the so smart expat like yourself had the privilege of western education and should not be in Thailand endangering his family on daily basis and receiving stupid education. 

 

Right? 

Wrong!  I think you need to change your meds or whatever else it is that gets you on such a high a horse. You have no knowledge of my circumstances and I resent your sick implications that I am endangering my family.

 

Like most expats, I am quite capable of ensuring that my daughter is not affected by these shortcomings in the Thai education system. The word "our" in my post is reflective of my feeling of inclusiveness in my school community and being sorry for those parents who can't do this. Take another drink/pill and calm down.

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22 hours ago, saengd said:

teachers credit unions typically pay 6% interest on savings, another perk. 

seriously ?

 

I could earn big bucks with 6% interest on savings

 

I could almost live like most TV rich pensioners here

 

but no, my bank gives many times less, lol

 

anybody has great investment tips for 10 MIL? 

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