Guest Posted September 8, 2005 Report Share Posted September 8, 2005 A few months back in Nakhon Sawan a case made the news in which a women's hand was cut of for not being able to pay back her loan. In this case the shark and her enforcers were caught, it was a bit too extreme, and in full public view at her market stall with dozens of witnesses. Just pay up, don't haggle. Link to comment Share on other sites More sharing options...
gummigut Posted September 9, 2005 Report Share Posted September 9, 2005 Pay up. It's just no fun. This sort of money lending is rife among the poor as they don't have additional sources of capital. Quite rightly so in my opinion because they are all clueless on financial management. 15 to 20% is the general street rate per month. That's on the ORIGINAL amount. So if you borrow 10,000 baht @ 20% monthly. And pay back 5000 baht a month, you'd figure you'd finish paying it off in the third month? Nope. Every month interesit is 10,000 * 0.20 or 2,000 baht no matter how much principle you've paid down. If you don't cover the interest, it get's tacked onto your principle. I'm pretty steamed myself right now about money lending. I know a Thai guy and girl who went out and just finance a Nouvo motorcycle. Wish they talked to me about it before they got it. They told me the terms. I told them how much they are going to pay for it n the end. They said I was lying, so I showed them the math. 10K down, Payments over 2-years to total over 80K baht (including down payment) for a 45K bike!!!!!!!!!! If they could have waited a month, I might have financed it and pocketed 25K profit the second year and STILL saved them money. Well of course the reply was very Thai, doesn't matter anyways, it's cheaper than us taking cabs everyday to work. Gahhh! And that's not even true!!!! <<burp>> Link to comment Share on other sites More sharing options...
-.-.- Posted September 9, 2005 Report Share Posted September 9, 2005 I am very surprised to be hearing these rates. Has been some years since I have first hand knowledge of this so I stand corrected. The general consensus is to pay it off as quickly as possible so I will second that- especially if they are bothering her relatives. I still think that she could offer less interest as she is no longer in Thailand and they would probably accept it but maybe you don't even want to bother trying. Good luck! Link to comment Share on other sites More sharing options...
johnnyk Posted September 9, 2005 Report Share Posted September 9, 2005 Fcuk, at least the cabs have air-con! Link to comment Share on other sites More sharing options...
Flashermac Posted September 9, 2005 Report Share Posted September 9, 2005 There was a somtam woman in my neighbourhood who borrowed something like 3,000 baht from the local money shark at 10% per WEEK! The gal finally ended up leaving Bangkok, since she was so deeply in debt that she would never be able to get out -- short of winning first prize in the national lottery. Ridiculous lending rates are very common. Those who lend are scum who feed on the poorest level of society, and they usually are not above using violence if not paid back when they think they should be. Link to comment Share on other sites More sharing options...
Guest Posted September 9, 2005 Report Share Posted September 9, 2005 Showed my GF the math on using a taxi verses buying a car... In all areas centering around money...my TGF over time grows to understand that I know best! I will not let her get taken in if she talks with me first! It's all the times she doesn't come to me first that she kicks herself! SkiBum Link to comment Share on other sites More sharing options...
Si_Saket_Girl Posted September 10, 2005 Report Share Posted September 10, 2005 Mut to gib if U hab frend same famly if u thrsty hab no watr maybe frend hab water give for U. kow jai mai? ok U tink abut it ok? Link to comment Share on other sites More sharing options...
cardinalblue Posted September 10, 2005 Report Share Posted September 10, 2005 Granted that these people are not up for "citizen of the year" awards, but what they do is really no different than how business is conducted in a captalistic market: get as much as you can! - buyers beware! How are they any different than from the rainbow BG who wants 3,000B, the street vendor charging 4X the market price, the 7-11 who charges 15B for a soft drink when the local market price is 7B, the credit card company with excessive above average interest rates, the entreprenuir who relocates overseass for cheaper labor costs, luxery hotel taxi rates, or the homeowner seller who wants more than 25% higher than current market rate. They are all trying to maximize their profit margin... The bottom line is that for someone who pays too much, ones needs to have a buyer ignorant or otherwise to execute the transaction. It takes two to tango. I don't see where greed is any more worse than stupidity/ignorance as long as the buyer had other options even if limited or unaware.... CB Link to comment Share on other sites More sharing options...
thalenoi Posted September 10, 2005 Report Share Posted September 10, 2005 gummigut said:15 to 20% is the general street rate per month. 10K down, Payments over 2-years to total over 80K baht (including down payment) for a 45K bike!!!!!!!!!! <<burp>> Sorry, don't get your maths here: 35k at only 10%/month over 24 months linear without capital reimbursement is 35000 x .1 x24 = 84000 baht interest, is 119k with capital. I do remember a noodle shop lady who borrowed 1k baht from a neighbour and had to pay back 110 baht/day in 10 days, total 1100 baht, not too bad for such a short period. Link to comment Share on other sites More sharing options...
Guest Posted September 10, 2005 Report Share Posted September 10, 2005 "The bottom line is that for someone who pays too much, ones needs to have a buyer ignorant or otherwise to execute the transaction. It takes two to tango. I don't see where greed is any more worse than stupidity/ignorance as long as the buyer had other options even if limited or unaware" Good post!! Seems by the way that more standard rates in business transactions are 2% per month and 5% for 3 months in Bangkok. Pretty high compared to european standards. Still a few weeks ago saw a broker discounting a check on sunday he could have cashed on monday. He prolly lost 2% for it. End of the day people mostly get what they deserve Link to comment Share on other sites More sharing options...
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