Government to help ease teachers' debt problem

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buksida
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Government to help ease teachers' debt problem

Post by buksida » Sun Jul 22, 2018 4:21 pm

The Finance and Education ministries have joined force to help ease teachers’ debt problem through refinancing by Government Savings Bank.
Finance Minister Apisak Tantiworawong and Education Minister Gen Dapong Rattanasuwan on Wednesday witnessed the signing of a memorandum between the GSB and the Office of the Committee for the Promotion of the Welfare of Teachers and Educators.

Under the MOU, GSB will provide loans up to a ceiling of 300,000 baht to each teachers who is already indebted to the GSB. The new loans which are charged 4 percent flat rate and payable in 20 years will be used to refinance the old loans with the bank which charged higher interest rates.

However, only teachers who are over 50 years will be eligible to the loans. About 289,000 teachers are expected to join this new loan programme.

Source: http://englishnews.thaipbs.or.th/govern ... t-problem/

Hmmm, easing debt by giving them another loan?! How about some education on not getting into debt in the first place ... "no - you don't need that iPhone 10 and a new SUV".
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson

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Re: Government to help ease teachers' debt problem

Post by dundrillin » Sun Jul 22, 2018 9:08 pm

Yes and perhaps the American financial institutions could get some advice as how to prevent another financial catastrophe -- we are still paying for the last one.

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Re: Government to help ease teachers' debt problem

Post by handdrummer » Mon Jul 23, 2018 9:38 am

dundrillin wrote:
Sun Jul 22, 2018 9:08 pm
Yes and perhaps the American financial institutions could get some advice as how to prevent another financial catastrophe -- we are still paying for the last one.
As long as the current administration continues to roll back regulations and bail out the banks for their poor business practices nothing will change. The banks know how to prevent a repeat of the last financial disaster but as long as they can continue to make profits without fear of punishment for wrongdoings they will continue to do so. The corruption at the highest levels of business, government and society in the US make Thailand look like small potatoes.

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Re: Government to help ease teachers' debt problem

Post by Spitfire » Sun Jul 29, 2018 12:46 pm

This is a crazy situation for many reasons and to be frank the teachers are just useless and entitled. Firstly, why are they exempt from credit checks? That's nuts! Secondly, why do they think that they are somehow special and should get a prime position to trough?

What part of 'If you borrow money you have to pay it back' don't they get? Most importantly, they don't get the idea that you don't live beyond your means and maybe they shouldn't have all these luxury items for their "face" as they obviously can't afford them. The entitlement of people now is just breathtaking and they don't realise that piling up debt for outward image is monumentally dumb. Hope there aren't any math teachers amongst this lot.

The banks are also to blame for predatory lending to totally unsuitable borrows which borders on financial entrapment so these workers are forever slaves to the government bank.

Also, why should certain sections of society get special treatment like rice/rubber farmers, teachers etc. et al and not everyone? Why should the financially irresponsible, stupid and greedy get relief and not other normal people who have debt problems that aren't from some politically sensitive section of society...or even relief (as a reward) for those who are paying their debts (as prescribed), and have not blown it, that fall into the 'performing loans' section?

This story is a stunning example of the greedy entitlement people now consider as their right. These sponging government workers leech so much out of this country whilst sneering in scorn at those they consider beneath them...pfft. Blacklist the lot of them...like dealing with children.

Edit - Typos
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Re: Government to help ease teachers' debt problem

Post by Nereus » Sun Jul 29, 2018 1:16 pm

It's a tough lesson

Debt-ridden teachers are being urged to learn to control their finances

https://www.bangkokpost.com/news/specia ... recent_box

Despite his 42,000 baht salary and extra allowances, each month Mr Namchoke, a 39-year-old teacher at a famous school in Bangkok who wants his real identity kept secret, has only 3,500 baht left to cover his personal expenses after his debts are paid.

Mr Namchoke said his debt burden totals 5 million baht and comes from a 3-million baht loan with the Government Savings Bank (GSB)'s programme for members of teachers' funeral funds and a 2-million baht loan from the Teacher Savings Cooperative (TSC).

He said the loans were to cover the costs of his mortgage, car and investment in a business which went bad.
"Some months ago, I had to borrow money from friends and family members to survive because 3,500 baht is not enough. I also moonlight to earn extra money, but the income is not yet stable," he said.

Ms Kannikar, 44, another teacher who also wants to withhold her name, in Bangkok, said her financial situation is even worse than Mr Namchoke's because her debts are larger. She owes 6 million baht debt to the GSB and TSC.
"My 40,000 baht a month salary is 10,000 baht less than I need. So I struggle and have to do extra business here and there to make ends meet," she said.
Ms Kannikar said she borrowed the money to buy a house and cars several years ago because she wanted to have what other teachers have.

Mr Namchoke and Ms Kannikar are just two examples of thousands of teachers in Thailand who struggle to manage their money and find themselves at risk of spiralling into an ever-worsening cycle of debt.
According to the Education Ministry, the total amount owed by teachers to the GSB and various cooperatives is estimated at 1.2 trillion baht.

The GSB alone has lent 410 billion baht to 450,000 teachers or, on average, one million baht to each teacher. But most teachers also have low-interest loans from other sources such as cooperatives, the teachers' welfare fund and funeral loan schemes. It is estimated that each teacher may be up to three million baht in debt.

MAHA SARAKHAM DECLARATION

About a hundred debt-ridden teachers recently launched a campaign and staged a rally in Maha Sarakham and Nakhon Ratchasima calling for the government and the GSB to give them a six-month moratorium on debt repayment to the Funeral Service Welfare for Teachers and Education Personnel fund.

The group, who said they were suffering from overwhelming debts with the fund, urged 450,000 borrowers nationwide to stop repaying these debts from Aug 1 to further pressure the government.

After that six-month grace period, starting on Oct 1, the group also demanded that the annual interest charged on the fund's debtors be lowered from 5-7% to 1%, as was applied to the government's loans to farmers.

Ouychai Watha, head of the group, said the declaration was a symbolic gesture and claimed that teachers' indebtedness was not caused by their inability to service their debts alone but also stemmed from the debt structure and interest calculation.

Mr Ouychai said for the past seven years he had paid monthly instalments of over 7,000 baht on the 1.2 million baht he borrowed. Though the capital amount owed had been reduced by 100,000 baht, it left him still owing 1.1 million baht.

He said that others who had also borrowed from the fund were made to buy 10-year insurance policies, paid for through a single payment of between 80,000-200,000 baht. He said neither the fund nor the GSB offered an option that would allow the debts to be paid off faster.

Following the declaration, the GSB said it would take legal action against defaulters and warned teachers nationwide to accept their obligation to repay the debts because anyone who fails to make good on a debt exceeding 1 million baht could be forced into bankruptcy for three years, along with any guarantors.

WHY ARE TEACHERS DEEP IN DEBT?

Pinitsak Suwanrang, secretary-general of the Office of the Teacher Civil Service and Educational Personnel Commission (Otep), suggests that easy access to funding with few strings attached is the main reason for the problem.

"Teachers are not required to undergo credit checks with the National Credit Bureau before borrowing money from the GSB's loan programme for members of teachers' funeral funds or the Teacher Savings Cooperatives. Moreover, Every teacher who is a member of a teachers' funeral fund, is allowed to borrow up to 3 million baht even though their salary might be as low as 15,000 baht a month," he said.

"It is not uncommon to find debt-stricken teachers continuing to buy various expensive consumer products on hire-purchase, which further aggravates their debt problems.

In Thai society, "Face is very important to gain respect and recognition," Mr Pinitsak said.
However, Mr Pinitsak said the group of teachers who want to halt their debt repayments represent just a minority and that the majority of their profession do not agree with them.

ARE TEACHERS' EARNINGS TOO LOW?

Many teachers who are threatening to stop repaying their loans have claimed that they are paid far less than those in many other professions, so they have to borrow money to cover expenses.

In response to this, Mr Pinitsak said the salaries of teachers in Thailand are not low at all. In fact, salary ranges can be anywhere between 15,000 to almost 70,000 baht a month depending on their position.
"The salary of an assistant teacher, the lowest level of the profession, is between 15,050 and 24,750 baht which is actually higher than many professions," he said.

LONG-TERM SOLUTIONS

To prevent undisciplined teachers from borrowing more money, Mr Pinitsak believes the Funeral Service Welfare for Teachers and Education Personnel fund and Teacher Savings Cooperatives nationwide should tighten the criteria for their loans by requiring them to undergo credit checks with the National Credit Bureau first.

Next, the government should help improve teachers' financial literacy.
Mr Pinitsak added that it's also important for teachers to understand the sufficiency economy theory.
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Re: Government to help ease teachers' debt problem

Post by handdrummer » Sun Jul 29, 2018 1:46 pm

As I told my daughters; don't spend more than you earn. One has listened, one hasn't. The one who hasn't scrambles every month just to pay her electric and water bills (in Bangkok) and continues to eat at expensive restaurants several times a week. Her husband buys expensive toys and they're in debt up to their eyeballs. The younger is frugal, has savings and no debt and lives as well as the older one. The younger earns 1/2 of what the older one earns. Teachers take note.

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Re: Government to help ease teachers' debt problem

Post by PeteC » Sun Jul 29, 2018 1:49 pm

handdrummer wrote:
Sun Jul 29, 2018 1:46 pm
As I told my daughters; don't spend more than you earn. One has listened, one hasn't. The one who hasn't scrambles every month just to pay her electric and water bills (in Bangkok) and continues to eat at expensive restaurants several times a week. Her husband buys expensive toys and they're in debt up to their eyeballs. The younger is frugal, has savings and no debt and lives as well as the older one. The younger earns 1/2 of what the older one earns. Teachers take note.
:thumb: :clap: :bow: Give that girl a "well done" from me! Pete :cheers:
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Re: Government to help ease teachers' debt problem

Post by handdrummer » Sun Jul 29, 2018 2:12 pm

PeteC wrote:
Sun Jul 29, 2018 1:49 pm
handdrummer wrote:
Sun Jul 29, 2018 1:46 pm
As I told my daughters; don't spend more than you earn. One has listened, one hasn't. The one who hasn't scrambles every month just to pay her electric and water bills (in Bangkok) and continues to eat at expensive restaurants several times a week. Her husband buys expensive toys and they're in debt up to their eyeballs. The younger is frugal, has savings and no debt and lives as well as the older one. The younger earns 1/2 of what the older one earns. Teachers take note.
:thumb: :clap: :bow: Give that girl a "well done" from me! Pete :cheers:
Thanks Pete, I'll do that, she thrives on encouragement.

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