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  1. #1
    Mid
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    Thailand : household debts nearly double in seven years

    Thai household debts nearly double in seven years

    BANGKOK, April 15 (TNA) - Thailand's household indebtedness rose to an average Bt116,681 (US$3,700) per family last year from Bt68,405 (US$2166) in 2000, almost double, according to Thailand's National Statistical Office (NSO).

    The increase was attributed to several factors, ranging from low interest rates and an increase in personal loans offered by financial institutions.
    However, debts for consumption comprised about 60 per cent of total household debts.

    According to the National Statistical Office, debts against average income per household increased to 5.6 times in 2004 and slipped to 6.6 and 6.3 times in 2006 and 2007 respectively.

    Household debts during the period totaled 16 per cent of total assets, still lower than a number of countries. In the US, Columbia and the Czech Republic household debts stood at 30, 18 and 27 per cent respectively.

    At the end of 2007, non-performing loans (NPLs) for private consumption taken at financial institutions stood at 4.1 per cent, down from 4.8 per cent from one year ago, and was considered still low when compared to 7.3 per cent of total NPLs in every business sector.

    Despite the sharp increase in household debts in 2007, the Bank of Thailand said the majority of the debts resulted from purchases of movable property or fluid capital and they were still "within manageable" limits and that the problem was not serious.

    Most of such debts were seen in low income families with low education which depended on loan sharks, the central bank said. (TNA)-E111

    enews.mcot.net


    errr ...........

    the Bank of Thailand said the majority of the debts resulted from purchases of movable property or fluid capital and they were still "within manageable" limits and that the problem was not serious.
    Most of such debts were seen in low income families with low education which depended on loan sharks, the central bank said.
    sounds serious to me ..................


    .

  2. #2
    bkkandrew
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    Credit crunch goes on tour. Inevitable Thailand is on the itiniery...

  3. #3
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    Is it any wonder when Cars 4 Cash does home delivery and Aeon will give a credit card to anyone who can draw a breath?

  4. #4
    bkkandrew
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    Quote Originally Posted by buad hai View Post
    Is it any wonder when Cars 4 Cash does home delivery and Aeon will give a credit card to anyone who can draw a breath?
    I thought that they had abandoned the breath-drawing test some while ago?

  5. #5
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    Quote Originally Posted by bkkandrew
    I thought that they had abandoned the breath-drawing test some while ago?
    Well, sure, but your credit limit is lower....

  6. #6
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    Quote Originally Posted by buad hai View Post
    Quote Originally Posted by bkkandrew
    I thought that they had abandoned the breath-drawing test some while ago?
    Well, sure, but your credit limit is lower....
    Just to give you an idea, a working buddie of my wife (earns the same, around baht 15K gross monthly) owes Kwik Cash around baht 250,000, that would be around a 2 years net salary...
    Don't know what their credit limit would be!

  7. #7
    Thailand Expat Texpat's Avatar
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    Kwik Cash?

    250,000 baht?

  8. #8
    bkkandrew
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    Quote Originally Posted by matsalleh View Post
    Quote Originally Posted by buad hai View Post
    Quote Originally Posted by bkkandrew
    I thought that they had abandoned the breath-drawing test some while ago?
    Well, sure, but your credit limit is lower....
    Just to give you an idea, a working buddie of my wife (earns the same, around baht 15K gross monthly) owes Kwik Cash around baht 250,000, that would be around a 2 years net salary...
    Don't know what their credit limit would be!
    Looks like a sloooooow payback for the Kwik Cash loan!

  9. #9
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    Quote Originally Posted by Texpat View Post
    Kwik Cash?

    250,000 baht?

    Yup, he is now trying to threat them with his private bankrupcy, they offer him a discount of about 35% if he pays up and the case don't goes to court - maybe they now that they overdid??? Anyway if it is that easy to get a huge discount on an owned amount, something must be wrong, IMO!
    BTW I know the figures to be correct, because the guy is using my fax line so that the company stays out of the case.

  10. #10
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    ^ Sorry - please read: Maybe they KNOW

  11. #11
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    One of my SIL works for GE Finance. She spends a huge amount of time sending letters to people who previously defaulted asking them if they want another loan....

  12. #12
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    Quote Originally Posted by Mid
    Thailand's household indebtedness rose to an average Bt116,681 (US$3,700) per family last year from Bt68,405 (US$2166) in 2000, almost double, according to Thailand's National Statistical Office (NSO).
    U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.

    USATODAY.com

  13. #13
    I am in Jail
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    ^ I don't think the thai figure includes housing. It's cars and credit card type stuff only.

  14. #14
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    Rolling all debt types together makes for a meaningless stat.

    112k in mortgage debt is not necessarily a bad thing.

    20k of credit card debt almost certainly is.

    As Smeg pointed out, and the first article notes, most of the Thai debt they're talking about is 'consumption' debt. That means you're not building up any equity in anything, you're just paying off cards and cars and appliances at an usurious intrest rate.
    Last edited by johnbkk; 16-04-2008 at 09:36 PM.

  15. #15
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    Quote Originally Posted by johnbkk
    112k in mortgage debt is not necessarily a bad thing.
    The 112k is not so much if you take into account what you need in the future to survive in the US - then the debt is more than 500k. Have seen many people here happy with 10k Baht a month. Hard to survive a week (or sometimes even a day) with this amount in the US.

    The bad thing is that Visa and Mastercard are looking for new slaves here. Hope that the Thai government can stop this even if some supermarkets like Carrefour and Tesco want to force you to use this "service". Better to get rid of those supermarkets than to allow to create endless credit slaves!!!

  16. #16
    សុខសប្បាយ
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    ^ Better a slave to a faceless corporation than to the mafia thugs that so many Thais are indebted to.

    At least Tesco won't send round a heavy to cut off one of your fingers, or force you to take loans with interest that makes even a loan of 1000THB unserviceable, or commit one of the numerous other criminal acts against your person that these loan sharks are known for.
    In debt for life and with your life with these thugs.
    Mortals you defy the Gods, I sentence you to travel among unknown stars, until you find the Kingdom of Hades, your bodies will stay as lifeless as stone.

  17. #17
    Thailand Expat Texpat's Avatar
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    If you're making 70 or 80K a year per household, 112K debt (with mortgage) is peanuts. Peanuts I'm tellin' ya.

    You can do better than that John. Nobody ever forces anyone into debt. It's a personal decision.

  18. #18
    ding ding ding
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    Quote Originally Posted by Texpat
    It's a personal decision.
    poverty is not a personal decision, take Isaan for example, most folks here are born into poverty, they dont choose it, either by signing on a dotted line or ticking a box. For someone who live in Isaan, you really need to open your eyes a little.

  19. #19
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    People in Esarn are born into poverty and ignorance at the same time. Getting out of it for most means leaving Esarn and its nothing-really-matters-much culture.


    As for the debt, it seems the way of the world. Just like the other issues that are out there we are going to put it off until we can't and at that point who knows what will happen. Thailand is nothing special when it comes to debt. As long as people keep playing the game by bringing new people into the pyramid the economic problems we chat about won't happen. There are plenty of new countries and people who will entere the economic casino. The US is losing a bit right now because some people are playing at the European casinos.

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