Debt

[Guest]

http://www.bangkokpost.com/news/general/769504/teachers-to-get-debt-help

 

Education permanent-secretary Kamchorn Tatiyakawee yesterday said about 13,000 indebted teachers would be saved from the threat of legal action by the Government Savings Bank (GSB) for defaulting on their loans ...

 

 

Only a few days ago, heard about someone in the local vicinity, although not a teacher, having committed suicide because of debt ...

[Coss]

What about all the folk what bought cars on the credit cards?

[Flashermac]

What about the folks who bought into Yingluck's first time buy plan, expending a big cash rebate ... which most of them never got?

[Pom Michael]

What about the folks who bought into Yingluck's first time buy plan, expending a big cash rebate ... which most of them never got?

 

Why did they not get the cash rebate? Must have been their fault, as the rebate program gave out to everyone who was eligible (AFAIK) - my in-law (who cannot drive, no license even) bought a car and got the rebate after one year.

[radioman]

I don't recall but I think there were some conditions attached, like you had to have a job and be earning in some bracket, have paid tax in the last year etc.

[Coss]

Why did they not get the cash rebate? Must have been their fault, as the rebate program gave out to everyone who was eligible (AFAIK) - my in-law (who cannot drive, no license even) bought a car and got the rebate after one year.

 

I'd be interested to know, how's your in-law faring vis a vis this?

[My Penis is hungry]

While I question the wisdom of her doing that, more than enough cars in Thailand, everyone I know got their rebate. Do you have a link to substantiate your claim that more than 50% didn't get the rebate?

 

What about the folks who bought into Yingluck's first time buy plan, expending a big cash rebate ... which most of them never got?

[Pom Michael]

I'd be interested to know, how's your in-law faring vis a vis this?

 

Not sure what you mean actually.

[Coss]

Not sure what you mean actually.

 

Sorry, I meant, has the in-law fallen into the stereotypical debt trap, or are they faring OK and not under financial pressure from these arrangements.

 

What I hear from elsewhere is that, some folk got a credit card, without being vetted, bought a car and got a rebate, spent it all up against the wall and now have their car repossessed, credit card cancelled, have to change name and move village etc etc.

 

Not that I'm suggesting your in-law is one like this, just curious, if they are in a similar situation.

[Pom Michael]

Ok, seems you already know the story?

 

First, she/we still have the car. She did spend the rebate ($100k). Did not have to change her name, nor move – but the rest you got spot on.

 

A year ago we (wife and I) had to step in and bail her out. It had finally gotten out of hand and the number of letters and calls coming to the house were getting out of control. Plus the wife was the guarantee on the car loan, so wife was on the hook also. Both of them were constantly fighting about it and the in-law was not a happy camper with her life.

 

The actual car loan is about 12K baht per month. She could not drive anyways (although did go to driving school and got her license after she bought the car), so the car was being used by an ex-boyfriend. Which meant she did not have any operating expenses for the car, but was responsible for paying the monthly loan.

 

She works, makes about 25K per month, no appreciable expenses (no rent, food at home, electricity, internet all provided).

 

What she was doing was getting advances on a variety of credit cards – in the end she owed 257K – with the monthly minimum amounts higher than what she could service – plus not being able to pay the car loan, nor have any money for herself. I would say that she was getting in debt an additional 12K every month.

 

Wife paid off all the credit cards in Jan 2015. {Actually first thing wife did was to go herself and get the car back.} Since then she pays back about 16K-17K per month. She transfers 20K per month every payday, and then over the course of the month will ask for a few thousand for her expenses. Her life is much better now, family life has improved and in-law is able to even send money upcountry to mom every once in a while.

 

For year 2016 – she will pay only 10K per month and finish off my loan later in the year.

 

Now, the issue that was not completely settled in the beginning – we really had no need for another car – so I have been servicing the loan, paying for insurance, maintenance and operating expenses for the car since Jan 2015. Wife has driven the car about 50% of the time (splitting between her own car and this one depending on the situation).

 

The loan has another 20 months left, and the car cannot be sold until 5 years (although there was recent talk about allowing these rebate cars to be sold after 3 years). So the real issue of who “owns†the car at the end when there should be about 160K of value left on it – that has yet to be resolved!