Déjà vu. I'm sure I've heard this before, though it looked a little different this time. This person is in financial crisis because of debt. Again.
One of the major social problems in Isaan is debt. Sometimes people borrow money because of real needs. But often it's just something to improve one's image—and having a good image is important in Thai society.
Sometimes people borrow from legitimate banks—there are 6 in Phon Phisai—but typically people don't qualify for these loans unless they have regular employment. But for government workers, getting loans easy. We know a school teacher who has unsecured debt of about US $200,000! She will probably not be able to pay it off in her lifetime, but the banks don't seem to care.
Even students aren't immune. We know a 16 year old high school student who got a 20,000 baht loan (about $600 USD) from a government bank to help with school expenses. And this is for a public high school! The worst thing is that the loan does not even cover all of her fees. Some of the fees are likely to pay for expenses that the school receives funds for, but then staff use the money for their own benefit. If the student is unable to pay back the loan when she graduates (that;s when it is due), she'll probably have to borrow more money to pay it back, essentially beginning a life of slavery to the government bank. Or perhaps she might look for an illegal was to make money to pay off the debt.
The next place to try for a legitimate loan is one of the 10 loan companies in Phon Phisai. Interest rates are higher than banks, but loans for vehicles or real estate are fairly easy to get.
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| Non-bank formal lenders in Phon Phisai |
A more insidious kind of loan is something like a cell phone contract. The companies will give you a phone at a really low price but you have to pay the agreed-to plan for one to two years. This was the kind of thing that got my friend in trouble. They thought that if they threw out the SIM card they wouldn't have to pay, but now the company was wanting the amount that the phone prices had been reduced by when they got them. And this was for phones for their young kids.
The worst kind of loan to get is in the informal loan market. These kinds of loans are very common and the cause of much grief in Thailand. Everyone dreads the motorcycle approaching with the rider dressed entirely in black. Typically you will pay twice what you borrowed—providing you pay it in time. We heard from one person who borrowed 4000 baht (about US $130) and pay off 8000 baht in 20 days! Why not wait twenty days and it would be like having an extra 4000 baht to spend!
The loan sharks often end up seizing the land of the borrowers, and they become very wealthy people.
One person we know borrowed a large amount from a loan shark and when they did not end up needing the entire amount, rather than pay off part of the loan, they just used the money for other things. Some was used for some fancy clothes and jewelry. In the end they ended up losing some land. Seems like a high price to pay for things that don't last.
Another problem with debt is that it can affect ministry. Sometimes people want to be in ministry or receive some training that will help their ministry, but they need to work long hours in order to pay off their debts and the opportunities are lost.
I don't think this issue is restricted to Thailand. How often to folks North America end up with large debts in order to have things to impress others? And the enemy is right there, throwing temptations at us 24 hours a day: "You need this!" "You can't do without this!" "Only $100 per month!"
I remember once going to buy a car and it was hard to find the price for a particular vehicle. All that was posted was the monthly payment. "How much if I pay cash?" I asked. The salesman gave me a weird look—this wasn't covered in the sales training. He had to go ask someone.
Here in Thailand the car dealers do the same thing. Poor people buy new cars because they get a good deal on payments. Car dealers will even throw in first class insurance (insurance for "collision" coverage) for the first year. After the first year, the owner usually can't afford this kind of insurance, and they just keep a very basic policy. If something happens to the car, the end up with no vehicle and big payments.
I get the feeling that debt is considered a normal part of life here--many people seem to resign themselves to it. Even if some people acknowledge the problems caused borrowing money, they do it anyway. They may be aware how much the debt will cost them, but they still take the cash.
We read in Proverbs 22:7, "The rich rules over the poor, and the borrower is the slave of the lender."
Those with money like the system of usury, though, because they profit from it. Even though there were scriptures prohibiting Jews from charging interest to fellow Jews (e.g. Leviticus 25:36, 37), they still did it. It got so bad that people were being sold to pay off debts (Nehemiah 5:1-8).
Desire for money.
Desire for stuff.
No wonder Paul warned us, "For the love of money is the root of all kinds of evil. And some people, craving money, have wandered from the true faith and pierced themselves with many sorrows." (1 Timothy 6:10 NLT)
The sorrows mentioned here are evident here in Thailand. Money worries are the cause of many sleepless nights. And it is not unusual to hear of someone committing suicide because they are so overwhelmed with debt.
Jesus warned us about money, "No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and money." (Matthew 6:24)
Money is not usually a problem if we are the ones using it. But too often it ends up using us. Perhaps that is the root of the term "usury".
Lord, give us wisdom to manage the financial resources you give us. Keep us from voluntarily making ourselves slaves to money and debt.
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