• 
• 

GE Money Thailand reminds consumers to think twice before applying for any kind of loan.

In the current state of the economy, consumers should spend smartly and carefully by considering whether they need a financial product or service, and whether they can afford it, before they buy something or seek a loan for a credit purchase.

The statement from GE Money is part of its campaign promoting awareness among consumers about borrowing.

"We will also provide consumers with personal-finance management tips through print advertising and other materials, as well as distributing leaflets at Skytrain stations," president Piriyah Wisedjinda said yesterday.

Within 90 days, GE Money will place the Spend Smart icon, a five-coloured pentagon, on 12 million printed items to prompt consumers to consider the following advice.

Today, no matter where we go, there are a lot of leaflets and advertisements recommending us to take out a personal loan, short-period loan or instalment loan. It seems like we can get money easily with no need to save like before, which makes some people spend the funds carelessly. So, please keep in mind that there is no free lunch in the world because everything has its cost. Consumers will benefit only when they borrow with understanding and prudence.

Think again before applying for a loan. There are questions you need to ask. What do we need the money for? What kinds of things do we need to buy? Which take priority?

The problem for many people is that they don't know which items should be left out and they think they need all of them. The technique recommended by GE Money Thailand is to draw up your own household budget.

Necessary expenditure such as rent, children's education, utility bills and food are what we need to spare money for. Then we can consider the unnecessary regular outlays, such as eating out four times a month or buying cigarettes.

The income and expense account will let you know your financial status each month - whether you have enough income for your expenditure and whether there are any savings for buying anything else.

There are still some other tips for financial management, such as getting ready before borrowing, the ways to make extra money for paying debt and how to make a dream come true even without a loan.

According to a recent survey, consumers rank trustworthiness and fairness of the service provider as the key factor in making their decision to use that financial service. If the provider can respond to their needs, they will be back for more products and also recommend the service provider to friends.

That's why GE Money launched this Spend Smart programme. Although the result will not be reflected in the short term, in the long term it believes it can achieve sustainable growth, Piriyah added.