Started! The minimum credit card repayment is adjusted to 8%

The Bank of Thailand (BOT) stated that debtors have to pay more than 10 years and have to pay higher interest on the whole contract if the minimum credit card payment is still at 5%. 

According to the BOT’s data, 70 – 80 % of credit card holders will repay credit card debt in the full amount. For those who pay the minimum amount of interest, such as a loan of 80,000 baht, 16% interest, and 5% minimum debt repayment will take 10 years and 3 months to close the debt with the total interest at 28,000 baht. 

If the minimum payment is 8%, it will take 6 years and 3 months to close and pay interest for 16,000 baht. However, if the minimum payment is 10%, it will take only 5 years to close the debt and the total interest is 12,000 baht. This shows that if debtors pay more installments, that money will be cut more principal, thus saving interest expense and closing debt early. 

If they can repay it, the repayment will be increased from 5% to 8%, which will close the debt faster. If they can repay more than that, they can pay 10% without waiting for the minimum requirement, or if you have a lump sum of money to close the debt then do it.

If you can’t repay their debt, the BOT has already spoken to all credit card creditors about the need for assistance in cases where the minimum payment threshold has been adjusted to 8 % and they cannot repay. Credit card creditors have to help restructure their debts for their customers from former credit cards to installment loans with the amount that can be paid per month so that they can pay off their debts.

To avoid large debts in the future, we must prepare ourselves for the new minimum credit card payment terms, whether to have more reserved money to pay off credit card debt, control monthly balance to be sufficient, and no more debt. If you can’t repay your debt, consult with the bank to restructure your debt.