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But over the past four or five years, our governments have urged the public to spend in the belief it would spur growth.

Financial firms backed a policy to increase loans and boost revenue and, as a result, local household debts jumped dramatically.

The Household Socio-Economic Survey conducted last year by the National Statistical Office showed average household debt had reached Bt116,681.

The expansion of hire-purchase loans, including for new and used cars, became a big part of this dilemma.

Most of these deals with financial institutions for used cars use repayment by instalment for four to five years, or 48-60 months. If debtors cannot make the payments after three consecutive months, the car can be seized.

Under the Consumer Protection Act, the car can only be repossessed after a third default.

What are the options for people facing this problem?

Firstly, start negotiating and don't run away or remain silent because such actions can diminish the chance of making a new arrangement.

Failing to meet with the creditors may lead to a more embarrassing outcome, which could mean being forced out of the car when it is repossessed. This can be avoided, though, as lenders have a number of options for debtors to renegotiate.

Second, consider getting advice from creditors. The criteria used are in the debt-management side of leasing businesses are:

1. Asking customers to partially pay overdue portions. If possible, customers should pay everything that is overdue and be convinced to keep a good financial record and details in the credit bureau. This is important when it comes to future financial transactions.

2. Restructuring debt or revising instalment amounts by lowering monthly payments. By doing this, the stress of debtors will be reduced.

3. Selling the car to the dealer or returning it directly to the creditor. Debtors must accept that the debt burden will come down after a creditor seizes and sells the car, but that may not be sufficient to clear the outstanding amount. Second-hand car dealers can help negotiate with the financial institution and return to the seller any outstanding amount they receive from the deal.

However, you must make a quick decision, as the price will drop when the car is about to be seized. Likewise, the interest and penalty fee will also increase, making the situation worse.

4. Assigning a hire-purchase contract. That is, getting someone who wants to use the car to transfer the right to continue making instalment payments.

If the car's price equals the outstanding debt, it means that your burden has been released.

Debtors should consider that the rental fees can offset the losses from default. It is very important to complete the contract before the period of default.

Most people would try to save on the transfer fee and end up paying more when the deal falls apart at the last minute. To be sure, time is of the essence in preventing the worst-case scenario from taking place.

Debtors and creditors should help each other to solve the problem. They should know their roles and focus on negotiation rather than resort to less severe action.

Always remember His Majesty the King's philosophy of "economic sufficiency" before buying a car - and never spend beyond your means.