Thailand's Central Bank, or the Bank of Thailand (BOT), is looking into a reduction on the minimum payment rate for credit card debt. They are currently in talks with the issuers of credit cards.

 

Prime Minister Srettha Thavisin had asked the BOT to think about bringing the rate down from the proposed 8% to 5%. This was to offer some relief to consumers who are finding it difficult financially.

 

The BOT wants to reach a final decision soon due to the importance of the issue. The Assistant Governor of the BOT, Chayawadee Chai-Anant, mentioned that any changes will be done with enough warning for financial establishments to change their systems. This is to make sure customers can manage their repayments effectively.

 

There are growing concerns in Thailand about rising household debts, which might go beyond 16.9 trillion baht by the end of 2024. This could make up more than 91% of Thailand's GDP. The slow recovery of the economy and low income growth are the reasons many are falling into debt, even turning to informal sources for loans.

 

Economists and policy makers are worried about the long-term effects this could have on the economy. There's fear of increasing non-performing loans (NPLs).

 

File photo for reference only

 

-- 2024-08-01

 

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11 hours ago, snoop1130 said:

Prime Minister Srettha Thavisin had asked the BOT to think about bringing the rate down from the proposed 8% to 5%. This was to offer some relief to consumers who are finding it difficult financially.

Why doesn't Srettha solve the economy instead of telling the banks what to do.

It’s a completely moronic idea. To reduce the minimum payment only extends the loan and interest. They need to teach these people to handle their money and not spend when they can’t afford to repay their debt. Stupid is as stupid does. 

No education on finances, investment, proper personal management.  Clueless.  At some point the bubble will burst.

 

Lowering interest rates won't help solve the problem of people borrowing because they see it as a way to get things today, not in 5 years. 

Persuading people not to buy a motorcycle out pickup truck is a really uphill solution.

I have never liked credit card interest rates and never made minimum payments. Pay the damn thing off asap with 30%+ the interest is killing you.