Teachers’ Debt Problems and Knowledge in Debt Management
Keywords:
Debt management, financialliteracy, teacher and educational personnelAbstract
This research aimed to study the debt load, assess the level of debt literacy and debt management, and analyze the relationship between debt load and debt literacy of government teachers and educational personnel, in order to provide guideline in managing and solving problems of debt more sustainable according to the Sufficiency Economy Philosophy. Online questionnaire was used as the tools for collecting data from the sample of 612 government teachers and educational personnel in the North, Central, Southern, Northeast, and the Eastern region of Thailand.
The analysis ofdebt situations revealed that teachers’ debt load as measured by the debt to assets ratio of teachers (1.5 times) is much higher than the standard criteria (should not exceed 0.5 times). The results of the measurement of basic knowledge on debt showed that most teachers had a “low” level of knowledge of debt. From the hypothesis testing using the Binary Probit Regression Model, it was found that government service life, household expenditures, and debt literacy level affect the teachers’ debt load with statistical significance at the level of 0.05,which the debt literacy level affect the likelihood of debt load in the opposite direction. The basic knowledge of debt that teachers should know is the compounded interest, the ability to repay debts each month that should not exceed 40% of their monthly income, and the debt load or debt to assets ratio should not exceed 50% of their assets.
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