THE INFORMAL DEBT SITUATION: A CASE STUDY OF PHRA YUEN AND MANCHAKHIRI DISTRICT KHONKAEN PROVINCE

Abstract

                The objectives of the study were to 1) examine the factor of the decision making on informal loans causes 2) understand the impacts of informal loans 3) provide information to government agencies to resolve the problems. This research was a qualitative research approach to data collection from in-depth interviews with 20 key informants. The finding shows that the majority of the farm debtors didn’t have balance for emergency savings. More than the individual and household as the values materialist and modern technology. When expending occurred, families could not access financial services as formal loan sources they had to depending on informal loan shark. Causes of the insecurity life and property from informal debt collection and informal creditors, if solving these problems should start with individuals and households as following. spending money habits wisely. reduce luxury items and brand uses. daily live based on Sufficiency Economy. Government should abolish a public policy cycle, beginning with the causes of informal debt. As financial institutions under the supervision of the Ministry of Finance to advice clearly the loans funds system and for safely debtors, providing that legal associated with informal debt into the public at the local community level to be better understanding, to prevent deception, confiscation, and exploitation by informal creditors , making people feel safe life and property.