15 minutes ago, Alotoftravel said:

With all these insolvency, how does the thai banks survive? In general, bank wants you to repay loans and not possessed the asset. Anyone care to explain thai banking profit operations. Thanks   

Banks charge 5% interest on home loans, but only pay 0.5% interest.

So if they lend against 10 properties, and 8 are repossessed they are still making a profit on your deposits.

Given that the cause of this unfortunate person's money woes is apparently the pandemic, which no one could have possibly predicted, I think it was reasonable for her to assume that her income was fairly stable.  Also, fleeing an abusive partner and becoming a single mother probably didn't make things easier.  (Sure, we could blame her for choosing a low-life, but that's not really relevant here.)

 

Not really her fault.

So if the bank loans gets competitive, less loans will be given out . So thailand banking operations takes advantage of the thai not being able to shop around for rates.

 

Are the thai business schools educating the students or …

On 12/9/2021 at 11:34 PM, Pravda said:

I think some comments are a little stupid. She didn't borrow money to buy Louis Vuitton. She borrowed  money to start a business.

 

 

And as was pointed out elsewhere, to escape a violent abusive marriage, and make a fresh start with her daughter. People moralising about getting into debt should try a little empathy maybe.

58 minutes ago, BritManToo said:

Banks charge 5% interest on home loans, but only pay 0.5% interest.

For Credit Card they charge 18%. And how they calculate the interest for cars is another story, sometimes not easy to follow. The interest is never calculated from the remaining debt.

On 12/10/2021 at 3:40 AM, Pravda said:

usually smart investment

Real estate here is not a good investment, as others have said, the van was the income stream and borrowing 1.2 million for it would have some serious repayments on top of annual insurance for it, registration, maintenance and petrol, why on earth did she need to buy a house and borrow 1.8 million, for show ?

 

As real estate here doesn't grow like overseas, rent would have been the best alternative until she paid the van off, unfortunately math has never been the brighter side of those who didn't do well education wise, she had other alternatives, but became inpatient as most do and then end up losing it all, sad reality.

 

Have to say I feel for her, but perhaps a lesson to be learned ?

 

As for the husband, I hope she gets as far away from that creep and the mother-in-law as she can.

On 12/10/2021 at 8:43 AM, HashBrownHarry said:

Is this taught in the education system anywhere else in the world?

Not much, but if you have a good education you are more likely to learn these things, and also advice from parents is important. Parents should teach their children from young , savings accounts , weekend jobs, etc . Of course I doubt very much that the majority of Thai parents have these abilities. From a kid I had Saturday jobs, summer jobs, a savings account, my father made us kids have a little notebook, money earned, money spent. I never regretted that as it has helped me all through my life and now I’m a pensioner I’m really happy I can do and go whatever and wherever I like. My brother and sister the same. I have two friends who have been very fashion conscious all their lives. ( in the business). Dior bags and Chanel trainers, expensive cars etc etc. They don’t have half what I have, and now have to downgrade on rentals etc. This is a big problem in Thailand, money goes out faster than it comes in. 

This  is a story of someone who

borrowed way too much money. Sadly with COVID, many people have lost their jobs

and are in the same condition as this woman. 

  Many people have been in bad relationships, that is a sad reality of the world

we live in. Those of us who have managed to avoid becoming  bankrupt, should feel

very lucky. This is a tough time for millions of people right now.

19 hours ago, TropicalGuy said:

Madness classic song……

Hoodoo Gurus released a great version of My Girl, a few years after the Madness version.
Worth a listen.

12 hours ago, 4MyEgo said:

 the van was the income stream and borrowing 1.2 million for it would have some serious repayments

 

16k a month over 7 years with Toyota Finance.

 

On 12/9/2021 at 8:52 PM, Adumbration said:

She is a bright,

Not so bright then.

56 minutes ago, Ralf001 said:

16k a month over 7 years with Toyota Finance.

 

Add to that 16,000 baht per month, food, rent and the running costs of the vehicle, say another 20,000 baht per month to stay afloat, in other words the bank lending her the money for the mortgage of 1.8 million baht was totally irresponsible. 

4 hours ago, 4MyEgo said:

Add to that 16,000 baht per month, food, rent and the running costs of the vehicle, say another 20,000 baht per month to stay afloat, in other words the bank lending her the money for the mortgage of 1.8 million baht was totally irresponsible. 

I don't know the lass so cannot comment her lifestyle spendings, I replied to the cost of the vehicle repayments, not anything more that you decided to dribble on about after the fact.

14 minutes ago, Ralf001 said:

I don't know the lass so cannot comment her lifestyle spendings, I replied to the cost of the vehicle repayments, not anything more that you decided to dribble on about after the fact.

Dribble, you obviously know nothing about 101 economics........on that note, I didn't ask you to supply me with her vehicle repayments so &%*$

43 minutes ago, 4MyEgo said:

Dribble, you obviously know nothing about 101 economics........on that note, I didn't ask you to supply me with her vehicle repayments so &%*$

Sound a tad butthurt, you claimed the repayments would be serious.

I pointed out there were not.

22 minutes ago, Ralf001 said:

Sound a tad butthurt, you claimed the repayments would be serious.

I pointed out there were not.

You obviously have no idea what Thai's are on salary wise per month, as I said, add to the monthly repayments, the running costs of the vehicle on an annual basis, example:

Approximates :

1st class insurance 25,000 baht

Registration              5,000 baht

Petrol                     130,000 baht (based on 2,500 baht per week) conservatively

Tyres                       20,000 baht (based on kilometres travelled per annum

Oil/filter changes   40,000 baht (based on 15,000 kilometre changes) this would obviously be conservative as the dealers charge more when it's under warranty.

 

Now if I stop there you have an additional 220,000 per annum or 18,333 baht per month on top of the 16,000 baht repayments per month that she would have to pay, that you provided.

 

That's 34,333 baht per annum to run her van and she hasn't even had a bite to eat.   

 

If the above are not serious repayments for a Thai, then you have no idea about 101 economics, like I said, who is a tad butthurt ?        

 

Tell the girl to take out a life insurance policy on that abusive <deleted>, wait three months and make it look like an accident.