Factors Affecting the Occurrence of Debt outside the Public System of Mueang Chumporn, Chumporn Province

Abstract

This research study about factors that influence debt outside the public system
in Municipal Chumphon, Mueang Chumphon following to these objectives: 1) To study
factor or cause of predatory loans of the public in Mueang Chumphon; 2) to predatory
loan behavior of the public in Mueang Chumphon; and 3) to study solution support to
solve problems of predatory loans for the public in Mueang Chumphon. This research
was a survey research by collecting data from questionnaires. The sample of the study
was the public in Mueang Chumphon, a total of 400 persons. Most of the sample were
career workers, followed by merchants and agricultural workers respectively. Results of
the study found factors or causes of predatory loans of the public incomes (the
highest), followed by social causes, expenses, motivation, and stimulus, respectively.
The reason of rent money from debt outside the public system were cash flow in
business and also for daily expense, with a frequency of once per three months and
the range of money was between 20,001 - 30,000 Baht. Most of the public missed
appointment of repaying the debt outside the public system because they did not
want to repay, or some necessary concern in the family was next reason. When there
was a problem of missed appointments in repaying the predatory loan, friends or
family supported repaying the debt outside the public system. For solutions of the
government to fix this problem, there were a lot of opinions in project solutions for
integrative social and poverty problems rather than Nano-Finance. Results of the
hypothesis found that personal factors, such as gender, education, occupation, salary,
and number of family member influenced predatory loans in Mueang Chumphon
differently. Moreover, behavior of borrowing money was also related to factors of
predatory loans of the public in Mueang Chumphon for instant income, expenses,
motivation and stimulus, social factors, and public relations of loan resources.