Jiraporn Maysoongnoen, 58, cannot recall when she was ever debt-free. As a new teacher at 18 with a monthly salary starting at 2,200 baht , she took out a loan for a motorcycle so she could ride to work in eastern Thailand.
Even though Jiraporn earns a regular income, unlike millions of people in Thailand’s informal sector, she is part of the household debt crisis that affects about half the country’s 66 million people. The Thai government has designated 2022 as the year to combat household debt, with an aim to help farmers, teachers, government workers, police officers and those who have student loans with debt restructuring and debt settlement.
The 30 per cent residual will not only help borrowers with expenses but also maintain their dignity, said Kajorn from the Bank of Thailand.Thailand’s household debt was at 90 per cent to GDP at the end of 2021 and is predicted to keep rising, crippling consumption and holding economic recovery back even further.
Pavida Pananond, a professor of international business at Thammasat Business School, said there were a few obstacles to solving the household debt crisis in Thailand. “Monetary policy has been loose over the last several years, so credit has been easy to come by. This has been worsened by the pandemic, because many people have seen their incomes reduced,” he said.
Achin joined the organisation in 2009 and just a year later, more than 10,000 people had registered to join her debt rehabilitation programme, with a total debt worth over seven billion baht.“When I first met Jiraporn, she was indebted to six credit cards, and she was sued by the credit card company who later confiscated her home,” Achin said. “A rehabilitation plan for her case was to seek a settlement with the credit card company and slowly repay the debt, one by one.