Credit card debt

[Cricky]

On 2/2/2020 at 11:33 AM, GarryP said:

The minimum payment of Thailand based credit cards increased from 5% to 10 % a few years ago. So at 10% surely her first repayment would be 56,000, then 50,400, etc.  So the figures don't seem to add up. 

I thought it was 1.5% per month 

[beavenlen]

Welcome to Thailand.

[Burma Bill]

[Timebandit]

Make her your EX girlfriend, explain why, change phone number and move to the other side of the city. Disappear. 

[spidermike007]

Unless you are beyond redemption, in terms of the way you feel about her, probably best to cut your losses and move on. This is a burden you will at least have to partly assume if you decided to make this long term. 

 

Frankly, I might interpret this as a sign that she is irresponsible and does not consider the consequences of her actions. 

[Mattd]

27 minutes ago, VYCM said:

I thought it was 1.5% per month 

Negative, the Bank of Thailand regulate this and the minimum payment is 500 THB or 10% of the total balance owing, whichever is greater.

The whole story makes little sense, as the regulated Maximum Credit limits should be no more than 5 times the card holder’s monthly income (or the average deposits in his/her account) or not more than 10% of the total amount of money in savings, fixed deposits, bond and mutual funds.

 

For those interested: This is the monthly income criteria for acceptance for a Thai credit card.

Card holders should have one of the following:

A monthly income of not less than THB 15,000;

Or deposits in a bank account which over at least a 6-month period average not less than THB 15,000 per month;

Or a debt instrument issued by a commercial bank or government or state-owned enterprise to act as a collateral against the full value of the credit limit; fixed deposits in a commercial bank of at least THB 500,000 which have been on deposit for no less than 6 months;

Or having one or the other of saving or fixed deposit, bonds or a mutual fund of at least THB 1,000,000 (or the combination of all categories) which have been held for at least 6 months.

[Dario]

On 2/2/2020 at 12:36 PM, ChaiyaTH said:

Tougher? In most EU countries you can not even get 1 credit card, even if you earn like near 2000 euro a month.
Here they can get millions of credit when earning 20K baht.

Interest rates are often 15% too, so that is not that much higher here. The risk is to it too. 
If debt is used smart, Thailand is a really good country in reality. You get the chance to do something.

My wife uses some credit for cashflow to buy merchandise and is always repaid within 2 months,
the interest is no issue as the profit she makes is 20% in a month.

15% on outstanding balance on credit cards in Thailand is wrong. The lowest interest is 20%, it used to be 24%. ChayaTH, you are misinforming the audience here. Come with facts. Which Thai credit card is charging only 15% per month?

 

 

[Kurtf]

Teach her how to set up a budget so SHE can start paying it down. Then get a new GF.

[Mattd]

10 minutes ago, Dario said:

The lowest interest is 20%

I think 20% is the maximum a regular credit card can charge by law.

Seems the regulations have change in the past few years.

IO_Credit_Card_2017_EN.pdf

[Kenny202]

14 hours ago, mshs said:

Good.  The prettier they are the less debt they have.  It is the same all over the world.  Where there is a LA9, there is a man not far behind, paying her bills.

The fatties are like the proverbial drunken sailor on shore-leave, spending on hair/nail spas & boutiques and "brand names" in an attempt to disguise their homeliness.

 

 

I'm not sure about pretty girls not having debts but you're spot on about the fatties lol. I never realised it before but it's true! Applies back home too I think

[Just Weird]

On 2/2/2020 at 10:48 AM, HashBrownHarry said:

My girlfriend has just told me she has 560K credit card debt, 1 card.

 

She pays 17K per month, 13K of which is interest!

 

If she loses her job ( she makes 35-40K pm ) and can't make the payments, what happens to the debt?

- Do the 'heavies' come to her apt and take her belongings of value?

- Does the debt go to family, parents / brothers or sisters / kids?

- Is it written off?

1.  Eventually the bank will arrange for a debt collection agency to chase the outstanding, taking of personal possessions can only happen legally after a court order.

 

2.  No, the debt does not pass on to anyone else, unless there was a co-signer acting as a guarantor who will be asked to repay the outstanding.

 

3.  No.

[Kenny202]

2 hours ago, Tchooptip said:

From most loan sharks I've heard of it was 2% ...per month, that is to say, 24% per year,  and yet thousands of Thais borrow at this rate of madness.

I think you will find the loan sharks in the villages about 20% PER MONTH on a small short term loan. Between 4-6% on a more substantial loan. They're meant to be short term loans (a month or two) but they never are of course. The debtor usually never even considers how they're going to pay the debt back, just show me the money. If the loan is more than 50k they normally need to hand over vehicle or land papers. I never felt sorry for them when I lived in the village. I used to hear them sitting around saying the loan shark was stupid, they never paid as promised and the loan shark never came to collect the money. Obviously forgotten. Of course after 6 months the interest had compounded past the original principal loan value and there was no chance they could pay it off. Then they would be crying poor, they didn't understand the interest etc. Would be a valid argument but they never made one payment off the principal, let alone got around to paying any interest.

 

How so many of them get sucked in and taken by gambling sharks. All their own greed and stupidity. They, the victim actually think they are cheating the shark haha. 

Edited February 3, 2020 by Kenny202

[Foghorn]

Why worry ,you not have the debt

[Kenny202]

55 minutes ago, spidermike007 said:

Unless you are beyond redemption, in terms of the way you feel about her, probably best to cut your losses and move on. This is a burden you will at least have to partly assume if you decided to make this long term. 

 

Frankly, I might interpret this as a sign that she is irresponsible and does not consider the consequences of her actions. 

I don't know. I have been out with many girls here from village girls to doctors, teachers, government workers. They all had substantial debts be it credit cards, home loans, car finance, loan shark. I doubt very much you would find a girl here didn't have any debt. Only the severity of the amount may vary. There is no reason you can't have a GF who has debts. Just make sure they are not or will be your problem. They are all generally irresponsible with money in my experience. Easy come easy go. Why Thais never seem to look after anything (vehicles etc). I liken it back to the 70's where back in the west when we just started getting credit cards, loans became more available and many people did the same thing. Help her find solutions, help her budget etc but doesn't mean you need to pay her debts. I have a policy about this. I won't pay anyones loans or gambling debts and I won't loan a Thai money. If she is serious about the relationship she will accept this. In a few relationships I have had the girl try it on, asked for money etc usually after a couple of weeks. I used to get quiet annoyed, farang not ATM etc...you only want me for money etc. Usually I was pretty much over them already and good excuse to move them on. I have come to understand in Thai culture they see no harm in asking you to help them, or to loan them money etc. As you should see no harm in refusing. And just because you refuse doesn't mean the girl only wants money or only wants you for money. It's ok to say no and provided she's not a bar girl once she knows the rules all usually will be ok. If you are considering a long term relationship it may be a deal breaker unless she has the means to pay it off.

[Austrian26]

nearly everyone in thailand has between 200k to 1 mio debt and are pretty much enslaved by the high interest rates. its pretty <deleted> up. 

 

i know someone with a masters degree (worked at a bank) who gave herself so many credits - house, car, shopping etc. - that she had to stop work and basically is a prostitute in japan now. (after she got blacklisted in south korea already) 

 

 

Edited February 3, 2020 by Austrian26

[eggers]

Guess the choice is yours whether stay or go?? 

 

Happens all around the globe, people don't know how to handle debt, u either take a sympathetic approach & help her out or simply walk away & leave her w/ her problem...that's your choices as I see it!

[Max69xl]

"Is it written off?"

Yeah, in her dreams. 

A piece of advise,run! 

[justin case]

the amount is not a problem as long as she does not start asking you money

 

or just taking it from you without knowing...

[Pedrogaz]

Tell her parents to pay it off.

[TTL2]

If she loses her job ( she makes 35-40K pm ) and can't make the payments, what happens to the debt?

- Do the 'heavies' come to her apt and take her belongings of value? YES, her house as asset will be lock down. Depending on law country to country, she could only keep belongings not more than $5,000.

- Does the debt go to family, parents / brothers or sisters / kids? YES, if the bank could proof that home furniture, cars, machinery was paid through the credit card.

- Is it written off? Depend on what item.

[ChouDoufu]

On 2/2/2020 at 1:20 PM, eisfeld said:

 

Those numbers don't even come close to what I'd say are real world numbers in Thailand.

 

1. The interest seems too high

2. The monthly repayment of principle seems way too low

 

Do banks in Thailand allow a debt limit of over 10x the monthly income of the person?

What bank is this card supposed to be from?

 

The amount of debt and small monthly payment might hint that this is maybe from a car finance plan.

the interest is just about right.

 

total balance is 560K, interest rate is 28%APR

approximate total annual interest ~ 156K

divide that by 12 monthly payments ~ 13K/month

[TTL2]

5 minutes ago, ChouDoufu said:

the interest is just about right.

 

total balance is 560K, interest rate is 28%APR

approximate total annual interest ~ 156K

divide that by 12 monthly payments ~ 13K/month

The longer the duration of the outstanding loan or expenses a person owes the credit suisse. The credit suisse will revise and bring up the interest annually until unimaginable percentage.

I used to owed over $100,000 of credit card bill and during that time I was out of job and in the middle of battling other manner in court. As soon as I won my court case (nothing related to credit card) and get a clear bill. I paid off all my credit cards debts using my post contest court case winnings.

Edited February 3, 2020 by TTL2

[ChouDoufu]

Just now, TTL2 said:

The longer a person owes the credit suisse, they will revise and bring up the interest annually until unimaginable percentage.

28% is what my thai gf was paying on multiple cards.

 

i think the minimum payment on most of them was 10%, so you'd expect op's lady to be paying 56K monthly, rather than 17K (about 3%).

 

maybe she got a special deal through her bank for having such a ridiculously high balance, or she refinanced, or could be a car loan.

 

or...perhaps she IS paying 56K per month, but then two days later takes a 40K cash advance on the card, taking it right back up to the credit limit?

.....yes, it can be done.  don't ask me how i know.

[4MyEgo]

On 2/2/2020 at 3:29 PM, Lacessit said:

It depends on whether the OP wants to help his GF. And whether it would stretch his own finances.

Quite right, however the way I see it, a relationship is not an asset and any debts that come with that relationship should belong to that person with the debt.

 

I would hazard a guess that the mere 560,000 debt came from her being irresponsible, suffice to say, it's her irresponsibility that got her into debt, and she should have to pay her way out of it so she can learn.

 

If the boyfriend bails her out of the debt, no guarantee she won't get into debt again, besides, even if he had an agreement with her, e.g. honey, I will bail you out but you must pay me back 17k a month for the next 12 years interest free, means there is no guarantee he will be in that relationship more than the day after the debt is paid.

 

Woman come, woman go, the longer you control your finances, the longer you control your woman, after all, woman want that security, give it to them and you will have no control of your finances, let alone your relationship, gotta be cruel to be kind I say, works for me ????

 

[finnishmen]

500K not big, i know many my ex GF in pattaya bar girl and bkk bar girl have in bank account 1-7 million baht ewery girl, many BF falang and all send money ewerymonth lot, easy make money lot. one girl i looking we go ATM and i see she palance at account 5 million B she say have wery normal many she friend because foreigns pay maak ewery month, many BF 5-8 in usa and england have best because not have smart and money have maak. easy work she say. hahah i say i not has newer moneysame than you, but i meet ewery year she and she take holiday and we make funny one month lot funny together i has young, many disco,many island many beach go diving.and bar and disco. many good yeear-

[RichardColeman]

On 2/2/2020 at 10:48 AM, HashBrownHarry said:

My girlfriend has just told me she has 560K credit card debt, 1 card.

be interesting to know what assets she has for that debt or if it was just spent purely as she had credit

[ChouDoufu]

On 2/2/2020 at 11:48 AM, HashBrownHarry said:

My girlfriend has just told me she has 560K credit card debt, 1 card.

 

She pays 17K per month, 13K of which is interest!

 

If she loses her job ( she makes 35-40K pm )

 

how much are her monthly rent/car payments?

 

why is she ONLY paying 17K/month?

 

she should be paying 25-30K monthly.  anything above the minimum is taken directly off the principal, saving many tens of thousands in interest payments.

Edited February 3, 2020 by ChouDoufu

[ujayujay]

Run Forst, run.....

[steven100]

1 hour ago, Kurtf said:

Teach her how to set up a budget so SHE can start paying it down. Then get a new GF.

wrong .... teach her how to work the bars and pay it off

[Onrai]

I agree that something or everything doesn’t make sense. She makes $US 1,160- 1,333 and they give her a credit card with a limit of$US 20,000.  I have a credit score of 825, generally considered excellent, and I have never been offered  $20,000 limit credit card. I don’t think the banks and the credit card companies are naive, so why would they give her just a generous limit in the first place? Something doesn’t add up.