personal loan where do you go

[vo rogue]

we have debts of 2.2mil baht (2 cars repayments of 32,000 /month over 7 years,( 6 months in),1.8mil baht to pay out loans, + 12000 mth loan and other small loans),

so need 50,000 a mth before food bills etc . we have a business worth 12mil net income from it 60,000 mth but we spend 80,000 mth look after 5 adults 4 kids we dont buy luxeries. my thai wife has land valued at 4mil baht. should we borrow against business to pay out car loans ? refinancing to (hopefully) a lower interest rate than the car loans and save a little bit each mth .should we sell business ? and sleep better we want to borrow 3mil baht i need 400,000 for my marriage ext due to start seasoning in 2 months..any ideas ? farang under pressure.

[bitcoinbob]

bascially you dont need a loan, you have to better utilize the capital you have. you have 12,000,000 baht in a business giving you 6% a year 4 million in dirt giving you no return a year. and 2.2 million in debt that is costing you. sell the dirt pay off loans . sleep well

[yoshiwara]

What's with the cars and the loans piling up?

[Totster]

Sell one of the cars, halve the payments.

totster

[loong]

You are really leaving yourself open to be flamed. Nobody in their right mind would take on loan repayments of 50,000 Baht per month with an income of 60,000.

Trying to pay off loans early involves penalties, so if you can get another loan, you are not likely to benefit even if the interest rate is lower.

[mamypoko]

bascially you dont need a loan, you have to better utilize the capital you have. you have 12,000,000 baht in a business giving you 6% a year 4 million in dirt giving you no return a year. and 2.2 million in debt that is costing you. sell the dirt pay off loans . sleep well

First reply was a real response...I'm wai'ing you BCBob!!!

[Totster]

You are really leaving yourself open to be flamed. Nobody in their right mind would take on loan repayments of 50,000 Baht per month with an income of 60,000.

Trying to pay off loans early involves penalties, so if you can get another loan, you are not likely to benefit even if the interest rate is lower.

Getting a loan to pay a loan is never a good idea anyway. Very irresponsible borrowing in the first place.

totster

[brit1984]

After deducting any kind of reasonable salaries for the "5 adults" who are living off the cash flow from (and I assume have some involvement in running) this business, there is zero profit.

On this basis, unless this is a start up, or there are other reasons to expect significant growth in sales and profit, the business (aside from any assets that may be held by the business) has little or no value as going concern.

Therefore, if you can really sell the business for 12 million (or anything close to that) you should do so, use the money to repay all loans and then re-invest in a business that produces a better return on capital or make some low risk investments (e.g. bonds or property) and get normal salaried jobs to pay the bills.

Given that your living costs (excluding debt service costs) are ~30,000/month, only 1 person would need to work and you would already be clear.

[inzman]

Dude, you are really irresponsible with borrowing. You got into this debt trap because, like the Thais, you have to have the new cars and all the trappings you clearly can't afford. My take on this is that the wife insists. But we all know Thais can't budget. Sell both cars, eliminate the debt, pay cash for a used car. Live within your means. Of course, the wife won't see it that way, she will probably want to trade you in for a rich Falang. Goddam it, don't allow a Thai women to force you into spiraling debt so that she can show big face to all her friends and family. Man up and live within your means.

[tingtongteesood]

60,000 per month divided by 9 people doesn't go far, maybe you should change your work and become an English teacher, you can make more money doing that than the pittance you recieve from the business....

[MobileContent]

A business that is valued at 12 million Baht but only generates 60,000 Baht profit/month is for me a failed business but if you could elaborate if the loans are already deducted and what you have left is 60,000 Baht?

Get rid of one car. With an income of 60,000 Baht you don't really need to drive around with two cars to look like Khun Chai.

Another option is sell the business just to get out of the loans. From my experience, investors would buy companies only at 24-36 months of the profit. If your company gets 60,000 Baht in profits per month, the real value would be between 24-36 months of the profit. Baht 1.44 to 2.16 million. You can't find an investor that buys a company for Baht 12 million to wait 10 years to get his money back.

[Billy The Kid]

Cut your loss and run for your lives and dont look back.

[Daffy D]

Sell the wifes land and pay off your family debts, then you will still have an income from the business to live off.

[maprao]

Get rid of both the new cars. This will give you an extra 32000 a month...and then do as Daffy D says sell the land.

Once you head is above water you can buy more land again if you really need it

Edited September 23, 2013 by maprao

[Suradit69]

Dude, you are really irresponsible with borrowing. You got into this debt trap because, like the Thais, you have to have the new cars and all the trappings you clearly can't afford. My take on this is that the wife insists. But we all know Thais can't budget. Sell both cars, eliminate the debt, pay cash for a used car. Live within your means. Of course, the wife won't see it that way, she will probably want to trade you in for a rich Falang. Goddam it, don't allow a Thai women to force you into spiraling debt so that she can show big face to all her friends and family. Man up and live within your means.

"But we all know Thais can't budget."

Great response to a farang who obviously can't budget or manage his affairs. It must be someone else who's at fault.

[JulesMad]

Any financing deal, especially here, is very expensive... I used to take a straight-forward bank loan (say 9%), and paid my motorbike and car cash. Financing thru companies will cost 20% or more.... This is basic economics 101....

OP, you need to balance ur spending; at the moment ur spending is way too high and will only get you in deeper waters!

Good Luck!

[FiftyTwo]

"We don't buy luxuries"

So you don't consider two cars costing you 32k/month luxuries?

Why not use a m/c like everyone else in Thailand?

[A1Str8]

I dont go anywhere to get a loan. I would never do it. The moment you decide to get a loan..the person or institution who gave it, owns you. And most of the time you are not going to get rid of your owners but you will get deeper and deeper in dept.

[harrry]

First thing sell both cars and pay off the loans...yes you will take a hit but you have immediately reduced your outgoings to a more manageable level. Your outgoings will reduce. Look at changing to a business visa temporarily until you get the finances worked out. Yes it is a hassle but takes the pressure off..(I presume you have a work permit).

Then take a good hard look with a real accountant...preferably someone with a western viewpoint.

THis should get you started.

[kingstonkid]

Ok just to make sure I have all the facts.

You are 4 million in debt plus other debts that you do not mention

You are paying out 94,000 a month in debt and living expenses

You want to add 3 million more to the debt pile

400,000 for a marriage extension

So you want to get 7 million baht in debt

That would mean that at 6% interest over 10 years you would be paying 77714 Baht/month to service the debt

this would mean that you would be 17714 in the hole before you opened your gob and took a drink of water.

My son you are a TRAIN WRECK.

No bank is going to give you a loan I doubt even a shylock would do it.

Selling your cars is not going to help very much because you will not likely get enough to pay off the loan.

My suggestion and your other half will not like this is first and foremost get in touch with a financial advisor that deals in AVOIDING BANKRUPTCY.

If you want you can PM me. I have done this work before in Canada.

Prepare a highly itemized budget that shows exactly what you spend money on and where it goes and who it goes to.

Make a list of all debts. The total amount still owing, what the monthly payment is and how much longer it is to go for.

Are you working for the company legally and do you have papers to back up the 12 million claim. If you do then get a work permit for a year. If not then go out and get a job teaching so that you can supplement your income Teaching should bring you about 25,30k a month.

Next tell your wife that she is not the queen of England nor is she the most important person in the world. Take away all plastic cards from every member of the family including but not limited to ATM and credit cards.

park the cars you cannot afford the gas.

[bbbbooboo]

Amazing Thailand

[kingstonkid]

Amazing Thailand

thailand hell

PICK A COUNTRY there are not only people in this position but there are countries also.

Just look at Barry land, France, Spain, Italy, and of course who can forget GREECE

[vincentc]

Penalties for repaying car loans are crazy here and so are the interest rates. I am stuck with a 12 percent (they cleverly marketed it as 7 'percent') yearly interest. Once realizing the true Yearly rate by analyzing the monthly payments and decrease in capital I realized it was 12 and wanted to pay back half the capital or even the full amount. The penalties for doing this are too high, so it's not worth it.

It's hard for a Farang to get a (refinance) loan here, in your situation it sounds totally impossible. Selling the cars gonna make you loose big time.

Selling the land seems the only option and I am taking you can make a profit here.

Good luck

[roger1999]

The land will sell quickly if priced fairly, and it will sell very quickly if priced a bit more than it's worth. Best of luck.

[tingtong]

my breakdown:

sell land

keep one car

get rid of non-contributing adults and not your kids from the household

train wife and yourself to live within your means

put leftover to season for your visa.

you are about debt free, and should be above water in the future too, many lives from less than 60k a month, even if you pay 16k for one car you should be ok.

[wolf5370]

There is an assumption here that the two cars are not part of the business earnings - they may not be, but they also may be. Selling them may not be viable. I would go for the land - sell and pay off the debt (or as much as possible). If you are paying silly interest (for HP/financing on the cars from a dealer), then a straight cash bank loan may bring the payments down, but it may be very difficult to get one for a rate that helps - increasing the term may help (the finance company may even do this - but it will cost you in the long run) especially if it can be done without pay-off penalties. If you can get rid of one of the cars, or make cash back from it - such as leasing it out - and that does not dent the company earnings/operation too greatly then it may be worth doing, even if you take a hit (which is likely). Smaller debts can possibly be slowed down with credit card juggling as long as you do not spend on them further - that is use one to pay the other before the interest is due each time (best to use non same company cards of course - i.e. Visa/MasterCard count as one company - Amex, Diners Club, etc as others) - be careful with this though.

Is the land Chanote or at least NS3? It may not be easy to sell otherwise.

[shaurene]

After deducting any kind of reasonable salaries for the "5 adults" who are living off the cash flow from (and I assume have some involvement in running) this business, there is zero profit.

On this basis, unless this is a start up, or there are other reasons to expect significant growth in sales and profit, the business (aside from any assets that may be held by the business) has little or no value as going concern.

Therefore, if you can really sell the business for 12 million (or anything close to that) you should do so, use the money to repay all loans and then re-invest in a business that produces a better return on capital or make some low risk investments (e.g. bonds or property) and get normal salaried jobs to pay the bills.

Given that your living costs (excluding debt service costs) are ~30,000/month, only 1 person would need to work and you would already be clear.

What a mess, sell the business it is not worth the stress and stop letting the wife run your life. You do not need the 2 cars sell one and get a second hand shooter from a bike shop. Am just guessing is your business like a little corner shop.

[umbanda]

Something is wrong with this picture. Looks like you are trying to have a BIG life with a SMALL income. If the business REALLY worth 12 millions my advise is to sell it...but....if its profits is just 60000/month...I do not see that value....Sell the cars even if you do not get any money, but get out the debt. If you need a car get a small and cheap new or a second hand....and...principally...live between your budget.

[worgeordie]

You should have listened to Mr. Micawber (Charles Dickens),

His saying is firmly embedded in my mind,from childhood.

basically, never spend more than you earn.if you want happiness.

Regards Worgeordie

PS sell the wifes land,its her trying to be Hi So,that seems to have

gotten you into this position,in reality it seems the land is the only

asset that you can liquidate fairly quickly,plus you are already in

the shit regards your visa,as it needs to be in the bank 2 months

before applying. Good luck,and I hope you learn from your mistakes.

regards Worgeordie

[Bpuumike]

You are really leaving yourself open to be flamed. Nobody in their right mind would take on loan repayments of 50,000 Baht per month with an income of 60,000.

Trying to pay off loans early involves penalties, so if you can get another loan, you are not likely to benefit even if the interest rate is lower.

Getting a loan to pay a loan is never a good idea anyway. Very irresponsible borrowing in the first place.

totster

Absolutely.

Did OP sleep through the maths lessons in school?

Edited September 24, 2013 by Bpuumike