The problem of misplaced trust leading to huge debts is a major issue in Thai society, affecting all levels—from grassroots workers and office employees to government officials. This is evident in news stories about professors repaying students' debts, friends asking to sign loan guarantees but failing to repay, or lending credit card limits to friends for phone installments, resulting in the lender facing massive debts for years.
How would one handle such situations? Let's hear two perspectives from CK Jeng, CEO of Fastwork, and Aun Phuwanart Kunpolin on this.From the program "National Agenda" Episode 18.
Let's start with Aun Phuwanart. He described the loan guarantee mechanism as a cause of family rifts and conflicts, sometimes breaking families apart. For example, a father asks his child to sign as a guarantor, but the child knows the father lacks financial discipline. The father might question why the child refuses, and others might see the child as ungrateful.
Many people find themselves in a dilemma when asked to guarantee a loan or lend money—feeling uncomfortable refusing but also hesitant to demand repayment.
“I used to be unable to say no. Suppose a close person who works with me daily and has always been good asked to borrow money. They knew I could lend without hardship. But from experience and past hurt, now I can simply refuse without any feelings,” Aun Phuwanart said.
Regarding family members asking to sign guarantees, Aun said they might not refuse outright but insist on clear discussions, explaining reasons and details before deciding. Personally, he believes the loan guarantee system—whether for loans or job applications requiring guarantors—should be reconsidered at the national level about its necessity and possible improvements.
CK Jeng shared his personal experience: a team member's family had debts, so he asked for six months’ salary in advance, which CK approved as it was part of the salary owed.
However, if someone asks him to sign a loan guarantee, he chooses to clearly refuse. Regarding money, if you don't lend, you seem bad; if you lend and later collect debts, feelings get hurt. It’s better not to lend at all. If asked to guarantee out of politeness, just “don’t trust and don’t feel obliged, that’s all.”
Sometimes trust extends to creditors. Nowadays, there is a service called “iCloud pawn” to get quick cash, where creditors receive the user's login ID and password. This means personal data, photos, videos, and apps can be misused, causing huge damage.
Aun Phuwanart commented that creditors used to carry paper contracts to debtors' homes, but now they can seize identities via social media or collect debts through social platforms. This is especially worrying for informal debts, as creditors may misuse personal information. Some victims get scammed, losing access to bank accounts and money.
“If Thais applied such creativity to tech positively, we'd surpass Silicon Valley. This is creative debt collection,” CK said.
Finally, on debt issues, CK suggests before borrowing or buying, one should clearly ask if the item can be resold. For example, a personal car isn’t the worst as it can be resold, though possibly at a loss but still with value. Borrowing to invest or start a business is worst due to interest payments; unexpected problems can cause heavier losses. Therefore, he advises investing savings instead.
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