Thai household debt deeper than ever

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buksida
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Re: Thais deeper in debt due to govt policies

Post by buksida » Fri Sep 04, 2015 7:10 am

Average household debt this year the highest in ten years
Thai households have an average debt of 248,004 baht each this year which represents an increase of 13.16 percent of last year’s average of a 219,158 baht which is the highest in ten years, according to a poll result of the University of Thai Chamber of Commerce.

Mr Thanawat Pholvichai, director of the economic and business forecast centre of the UTCC, said Thursday that the poll result came from an opinion survey of 1,200 households during August 20-28.

Of the average household debt of 248,004 baht this year, 48.7 percent are organized debt and the rest are unorganized debt, said Mr Thanawat, pointing out that the increased household debt reflected the economic slowdown in the past three years which has affected household revenues.

He explained that the fact that households were indebted to unorganized lenders more than to organized lenders because they had limited access to organized source of funding.

The causes of increased household debts range from lower incomes, increased cost of living, poor farm harvests, increased spending through credit cards to increased tuition fees of their children, gambling and excessive spending on hire purchases.

The survey shows that 87.8 percent of the debtors have problem of debt servicing; average household debt repayment amounts to 14,033 baht per month, representing an increase of 5.06 percent from last year’s 10,752 baht.

http://englishnews.thaipbs.or.th/averag ... -ten-years
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Re: Thais deeper in debt due to govt policies

Post by buksida » Mon Jun 26, 2017 9:06 pm

Thai household loan rate third highest in Asia
The household debt ratio in Thailand was the third largest in Asia in the third quarter of 2016, according a Bank of Thailand unit.

The Puey Ungphakorn Institute for Economic Research found Thailand’s household debt was at 71.2% of gross domestic product while the ratio was 123% in Australia and 91.6% in South Korea.

Sommarat Chantarat, head of the financial system section, and Atchana Lamsam, head of networking and communications at the institute, revealed the findings on Monday.

One-third of all 69 million Thais borrowed from formal lenders -- banks and financial institutions. The average per-capita debt was 150,000 baht, excluding educational loans, cooperatives loans and non-formal loans.

The number of debtors has also risen steadily since 2009 in line with per-capita household debt.

Importantly, Thais became indebted at a young age and half of new workers were indebted, the study found.

Those of the retirement age of 60-80 also found their debts did not decrease.

Most of the debts are personal loans (17%), cars and credit cards (9%) and home loans (4%).

http://www.bangkokpost.com/business/fin ... st-in-asia
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Re: Thai household debt deeper than ever

Post by bannsupaporn » Mon Jun 26, 2017 10:32 pm

"Live and Let Live" just be here now, Have a nice day.

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Re: Thai household debt deeper than ever

Post by Spitfire » Tue Jun 27, 2017 6:49 pm

Let them make it worse and 'screw the pooch', then the baht will plummet and stop being over-valued so the Chinese-Thais will no longer be able to tell the BoT to manipulate the currency so they can invest overseas.
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Re: Thai household debt deeper than ever

Post by buksida » Thu Jun 07, 2018 8:38 am

MOST THAIS THINK ECONOMY BAD, GETTING WORSE
A majority of the public thinks the economy is heading in the wrong direction as consumer confidence slipped slightly last month due to anxieties over rising costs and political uncertainty, according to survey data out Tuesday.

The University of the Thai Chamber Commerce reported over half of people surveyed felt the current economic situation is poor despite government reports it expanded at the fastest rate in five years during the first quarter.

“Political anxiety, as the election has been postponed to February 2019, impacts the people and investors’ confidence,” said Thanavath Phonvichai, director of the Center for Economic and Business Forecasting. “Whether the cabinet reshuffle will affect confidence depends on which minister will be in charge, if people have confidence that a new person is capable of continuing ongoing policies.”

Thanavath referred to rumors that junta chairman and Prime Minister Prayuth Chan-ocha may reshuffle his cabinet a fifth time.

The chamber of commerce report also identified unfavorable indicators such as a recent spike in petrol prices which “imposes a negative psychological impact,” as well as higher costs of living and commodities.

http://www.khaosodenglish.com/news/busi ... ing-worse/
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Re: Thai household debt deeper than ever

Post by Big Boy » Thu Jun 07, 2018 9:21 am

I've lived here over 6 years now, and in that time, I've barely seen Thai wages move. What I have noticed though is that prices in the shops have been creeping upwards.

To me, the big shift has been the massive increase in material goods, which must be leading to outrageous debt. The number of households with multiple cars/motorcycles. As an example, my neighbours don't earn a lot. In the 5 years since they moved in, they have bought 2 new cars and 4 new motorcycles - incredible debt. They have so many vehicles, they have to park some outside - why?

Another example is smartphones - who doesn't have one these days? OK, you can buy a half decent phone for around 6K these days, but that is a huge amount of money to a working class Thai. Then there is networking costs - probably cost at least one day's wage a month multiplied by number in the household - kids won't be earning.

Air conditioning - an essential for many Farangs, but used to be a luxury for working class Thais. Now you see banks of aircon units outside even small homestays and the outrageous power costs that go with them.

We have a thread on the effects of colonisation. I'm not sure if this is the effect of a backward country being affected by a lot of Western world people living here. Has the green eyed monster taken over, or is it natural progression? I don't know. All that I know is it can't be sustainable - the debt amongst Thais has become out of control.
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