‘Hair-Cut’ The technique to quickly get out of debt

Liabilities is a word that many people who have heard of may get goosebumps. Having debt sometimes leads to an increase in debt and the income is not enough to pay off their debts. Are there any ways to get out of debt quickly? This time, ACU PAY will take you to one of the alternatives for debt reduction and a fast way to get out of debt called ‘Hair Cut’.

Hair Cut is a request for debt restructuring with creditors by reducing and paying all debts with one lump sum and closing debt accounts immediately. For example, a debt of 200,000 baht will be negotiated to be reduced to 170,000 baht and will be paid to close the debt immediately. However, if there is not enough money to clear the debt at once, you can reduce it by paying it in installments within a short period such as 1-6 installments.

Advantages-disadvantages of Hair Cut in the debtor's perspective

Advantages of Hair-cut

This will help ease the debt burden faster, even if there is not enough money to repay the full amount of debt, including long-term interest burdens, and can start a new life without debt.

Disadvantages of Hair-cut

This could damage financial institutions’ reputation as a top customer because most of the ‘Hair Cut’ is considered by banks to customers who are in real financial difficulties. They also lose the opportunity to apply for new loans because of their outstanding debt history. If sued by financial institutions, they will incur costs that may affect their lives.

Advantages-disadvantages of Hair Cut in the creditor's perspective

Advantages of Hair-cut

This will help clients relieve their debts faster and not escalate into a bad debt crisis. The bank has to be strict with lending to quality debtors, which may be affected by the crisis.


It also helps the banks to get the money back even if it is not full, it is still better than getting nothing. The banks also do not have to reserve for bad debts and expand their services for customers who do not have access to the bank’s services to help improve their economy.


Disadvantages of Hair-cut

The bank may lose some of its money, not receive full debt, such as principal and interest that can’t be fully repaid. The bank should be careful in lending to new customers if there are large bad debts and outstanding customers seeking Hair-Cut privileges.

What kind of clients does a Hair-Cut suit?

This clearing method is appropriate for debtors who are beginning to be ready to pay their debts, with a large amount of money but not enough to close all of them, such as starting stable income, extra income or having a lump sum from selling certain assets. Most importantly, they are determined to resolve the debt promptly. The terms and conditions of debtors will be subject to consideration by creditors’ financial institutions.

How to do a Hair-Cut debt reduction negotiation?

A request for a Hair-Cut can be made at any time, or when we are ready to pay, which must be paid without borrowing interest-bearing money to close it because it will become a debt that will never end. Most of the time, it will take about 6 months for the request to begin negotiations or

  • ฺBefore receiving a summons
  • Already got a summons, but it’s not the date to go to court.
  • Be in the middle of a trial
  • It’s been decided by the court and is awaiting payment of its debt.

As for how to close the accounts once (most creditors want this) or pay in installments, everything depends on the satisfaction of both parties. Before closing the accounts, they must request a letter of confirmation from creditors following all agreed terms and conditions. No debts will be paid as discussed on the phone.


There are many ways of debt restructuring and each is suitable for different financial situations. Hair Cut itself is another effective way to get out of debt, but most importantly, it is to try not to rebuild debts that cannot be repaid.

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