22 July 2021 | By Bangkok Business Online
Understand before joining There is a difference between “debt relief measures” when “debt break” and “pay debt break”.
After the government announced cooperation with “State Bank” and “commercial bank“ take measures “Help the debtor” to alleviate the burden of installments After the concentration of “Lockdown” that affect various businesses by having measures “A moratorium on principal and interest payments for 2 months”
Many people misunderstand that “Suspend debt payment” is simply to stop paying debts. But that’s wrong!
because of the fact that the debt moratorium Interest is still charged. but will be considered later, unlike “Break the debt“ which is a suspension of payment without interest charged
“Bangkok online business“ therefore collecting information about the different nature and conditions during the “Debt Moment” and “Debt Break” to understand before joining the measures and make repayment plans easier
- Suspend debt payment
moratorium means that the period in which the payment has been suspended will “No need to pay both principal and interest” butThe bank will continue to charge interest for each period. and then come to collect interest later
such as Mr. g. Be a bank customer that provides measures to moratorium on debt 2 month During the payment period Mr. g. Do not pay the bank at all during 2 that month due to the suspension of principal and interest payments.
but after the expiration of the payment period 2 this month already Mr. g. Must return to pay installments as usual in the next installment. and will also have to pay interest on the period of suspension of debt
Examples of payment deferrals
such as Assuming there are outstanding debts 1,000,000 baht Usually, monthly installments are required. 10,000 baht (principle 4,000 baht interest 6,000 baht) after payment Mr. g. have to pay back 10,000 baht as usual + accrued interest 2 Month of accommodation to pay off debt is per month 6,000 for a time 2 month equal to the accrued interest from the period of repayment of debt 12,000 baht
However Accrued interest will not be charged immediately. may be charged at the last installment or have other formats depending on the conditions of each bank
Despite the running interest but The advantages of debt deferrals is 1. Have cash left over for essential expenses during a crisis. 2. It is not considered a default on payment. and 3. No loss of credit history
which conditions “Suspend debt payment” All of the above different from “debt relief” which are very close words But there are details from “Suspend debt payment” stay a little as follows
- debt relief
“debt break” means in the period that the debt has been suspended “No need to pay both principal and interest” andThe bank will “stop charging interest while we are on debt break”. with
Simply put, we don’t have to pay anything. and nothing owed from the period of “debt suspension” at all. returned to pay the debt as usual
An example is Mr. b. Be a customer of the bank that has a debt moratorium 2 month He didn’t have to pay the bank at all. during the period that the bank gives the debt suspension as in the case of debt moratorium but in between 2 months in which the debt is not paid bank will “Stop charging interest. of Mr. b. with
which means When the debt break period has expired Mr. b. will be ableReturn to pay monthly installments 10,000 baht as usual in the next period as usual like 2 Last month, the bank paused. Nothing happens, so “debt break” is different from “Payment moratorium” where the debtor does not have accrued interest to the bank after that.
so those who participated in the measures “Move on principal and interest payments” may have to prepare for installments in part. “interest” During the period of payment moratorium is provided as well.
As for those who still have the power to pay during this period Bank of Thailand suggest that
“Deferral of debt payment (Payment moratorium) The debt burden will remain and during the lenient period. Interest still going Each person may be affected differently and can choose a payment method that best suits their income and wallet.
If still in the group that still has potential May choose to pay as usual because it will help reduce the need to pay additional interest, no increase in debt, and some banks offer special interest reductions. But for those who are affected insufficient liquidity The way to postpone or moratorium on debt will also be one solution for this period.”
- A debtor who wants to ask for a 2-month debt moratorium, what should I do?
1. Check your own qualifications whether they meet the conditions set by the measure or not.
2. Submit a request to join the 2-month debt moratorium with a financial institution or business operator who is our “creditor”.