Thailand Eyes Credit Card Relief Amid Economic Woes, Plans Cut in Minimum Payment

[snoop1130]

 

Deputy Prime Minister and Finance Minister Pichai Chunhavajira recently suggested that the Bank of Thailand (BOT) could partner with other financial bodies to lower the minimum monthly credit card payment from 8% down to 5%. This idea was proposed during an Economic Cabinet meeting to help people struggling with debt due to the current economic downturn.

 

Amid the COVID-19 pandemic, the minimum payment was temporarily dropped to 5%, then was raised to 8% in early 2024. It's set to increase again to the normal 10% rate by 2025. Currently, there are about 24 million credit cards being used, with more than 1.1 million cards having balances that are over 90 days late - these are referred to as non-performing loans (NPL). An additional 200,000 cards are at risk of becoming NPLs.

 

 

To help tackle the problem of high-interest rates on these debts, initiatives like the Debt Clinic, run by the Sukhumvit Asset Management Company (SAM), have been launched. The program aims to stop further debt pile-up and gives people more time to pay back what they owe.

 

There's also an ongoing project to restructure automotive debts, specifically focusing on pickup trucks and motorcycles, which are vital for many people's income. Talks are in progress with stakeholders and finance companies to separate NPLs from repossessed vehicles and new loans. The proposed solutions will be discussed in the next Economic Cabinet meeting.

 

File photo for reference only

 

-- 2024-07-16

 

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[Tropicalevo]

Treating a symptom and not the illness.

[Pouatchee]

and in another thread

 

 

 

ya just cant make up this kind of news 💩

Edited July 16 by Pouatchee

[hotchilli]

13 hours ago, Tropicalevo said:

Treating a symptom and not the illness.

Very true...

[RichardColeman]

Good news for banks really, more extended loans !

[itsari]

8 minutes ago, RichardColeman said:

Good news for banks really, more extended loans !

Bad news for business in Thailand as new loans are heavily restricted .

[kingstonkid]

16 hours ago, Tropicalevo said:

Treating a symptom and not the illness.

The real challenge is that if you lower the payment, most people will probably pay less than the interest, forgetting about the actual loan.

 

The real solution is to restrict credit cards Stop with the easy loans to sell cars.  Banks have to learn to say NO and tell the government to stop with the promotions.

 

The sad thing is that this is not just Thailand but is an issue all over the world.

[Will B Good]

Also in the news....

 

Extending mortgage repayments to the age of 85.....talk about kicking the can....

 

The crash is coming.

 

 

[kingstonkid]

2 hours ago, Will B Good said:

Also in the news....

 

Extending mortgage repayments to the age of 85.....talk about kicking the can....

 

The crash is coming.

 

 

 I have no doubt.  GF's mortgage has a lower rate now and a higher-end payment after she is supposed to retire.  There is also no mechanism for making payments above what is it or making a bulk payment once a year

[Celsius]

monthly or yearly  payment of 8%????