Guidelines for managing debt problems of teachers in Phetchaburi province

Abstract

            This research aimed to: 1) study a debt status of teachers in Phetchaburi Province; 2) examine impacts of such debt problem on the teachers; and 3) find a solution to such debt problem. Population of this research were 381 teachers in Phetchaburi province who were members of the Phetchaburi Teachers Savings Cooperative. They were selected by stratified sampling.  A group discussion with 15 teachers was conducted. The research instruments included an unstructured interview guide and a questionnaire.  Descriptive statistics including percentage, mean, standard deviation were used to analyzed quantitative data whereas content analysis was used with qualitative data. The research found that: 1) Most of the teachers currently had debts with a value of more than 1,000,000 Baht; these debts came from loans gained from the Teachers Savings Cooperative; the average amount of payback installment per month was more than 15,000 Baht; and their incomes were not sufficient for payment of expenses; 2) the impact of such debt problem on the teachers was found to be at a moderate level; and when considering at each aspect, the impact in terms of work efficiency was found to be the highest, followed by psychological impact, economic impact, physical impact and social impact, respectively; and 3) the  guidelines for managing such debt problem included: encouraging the teachers to implement their own financial management by managing a balance between incomes and expenses; teaching the teachers to know how to calculate interests and principals; encouraging them to exercise disciplines in terms of money spending; providing a training on debt management; encouraging them to do money savings; teaching them to do household accounting; and providing knowledge on debt repayment, the results of late debt payment,  obligations relating to loan interests.  As for the teachers who had an ability to pay off for their debts, a financial institution should consider their ability to pay off the debts, together with their collateral in order to accept them as debtors in its system based on their willingness.  These research findings show that financial management is important, and teachers should set a goal and have a plan for saving, investment and payment of expenses, and ensure a good balance between expenses and income. They should also have a discipline in terms of how to use money. These practices can help them have stable life.