Open choice 3 measures to suspend debt, think carefully before settling on debt. Which is the best? Is it good to stay for a long time? And is the interest still running? Let’s find out.
From the epidemic crisisCOVID 19 In Thailand, faced almost a year ago, there was a break in various businesses and many people became unemployed. But the burden of debt Such as home mortgage, car loan, credit card installments Did not take a break, either Which previously the bank There was a measure of debt suspension to alleviate the suffering for the people.
But some people do not know that the debt will be suspended. What are the conditions here? Some people understand that The moratorium is To stop paying the debt by the specified period. Nothing more After the suspension period has elapsed, then pay the regular installments. No additional interest
About this wayBank of Thailand Ever come out to provide information on what each mitigation measure means. And at the end of the relief period How will the balance of each method be? Including if you have to choose between regular installments Or take relief measures Which way to choose? Assuming that there is a debt of 1 million baht with a period of 6 months of suspension with the following details:
–– Method 1, normal installments
For example, debt of 1 million baht, payment of 10,000 baht per month, divided into 4,000 baht, 6,000 baht in interest, after 6 months of debt break, the remaining principal is 976,000 baht.
Advantages
1. Decrease in debt
2. Some financial institutions will cut interest rates further.
Disadvantage
Must grit and pay patience, even if the financial situation has not improved.
–– Method number 2 for suspension of principal payment
This means The debtor does not have to pay the principal on time. But must pay the normal interest
For example, pay interest of 6,000 baht for 6 months, totaling 36,000 baht. After the 6-month term, the principal remains 1 million baht. When we pay the interest of 6,000 baht, we still have 4,000 baht on the principal remaining, which we can continue to use this money for during difficult times. But the principal has not reduced
Advantages
1. Not considered a default.
2. Debt payment history is not bad
3. Have cash left to spend necessary.
Disadvantage
The principal remains the same, does not decrease.
–– Method 3: suspension of both principal and interest
This means The financial institutions postpone the debt. Without having to pay the whole tree and the flower During the 6-month debt suspension period, the installment amount is 0 baht, giving the debtor the remaining balance of 10,000 baht each month to be used for necessary expenses. But during the moratorium Interest continues to move normally.
For example, 1 million baht of debt, with a 6-month break on the principal interest after the completion of the period There will be an additional 36,000 baht in interest while the principal remains the same.
Advantages
1. Not considered a default.
2. Debt payment history is not bad
3. Have cash left to spend necessary.
Disadvantage
Interest is still running as before. After the debt suspension measures expired There is also an increase in interest.
So which way to choose?
However, no matter which way you choose to pay off the debt. The important thing to think about is What is your current financial situation? Because the less you pay, the longer the interest will increase, and if you can’t afford it Recommend that you walk into the bank And it is better to consult with experts at the bank For the bank Will help find measures to help you in a timely manner Before it’s too late
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Thanks to information from Bank of Thailand–
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