Sometimes being in debt isn’t always a bad thing. However, the main principle in deciding to go into debt is You should choose to take on good debt, which includes: Debt that will create a future or long-term stability and avoid incurring debt that should be careful, which includes debt that does not create additional income or does not help increase financial stability, such as debt for consumer purposes, etc. because when it is “ Debt” then we have a duty to repay the principal including interest, fines, and other expenses. that will all follow

Therefore, if we do not have good management It may lead to “debt” that accumulates until it cannot be closed. become an obligation and ultimately lack of liquidity.

Get to know “good debt” (which creates income)

1. Debt creates the future, such as student loans. It is debt that increases opportunities for career advancement. and help increase income in the future
2. Debt for long-term stability, such as borrowing money to buy a home Because you don’t have to pay rent. When the installments are paid off, it becomes our property that can be resold or rented out to generate income.
3. Debt for occupation, such as borrowing money to buy a car or machinery To use as a tool for making a living to generate income.

Debt to be careful of

Debt resulting from borrowing money for consumption or to create comfort without reason, such as credit card debt from using to satisfy your own needs. Because of the idea that “Must-have items” such as changing mobile phones frequently as a fashion statement, even though it’s not necessary, creates an unreasonable financial burden and pose a risk to financial stability

However, the proportion of total debt payments each month should not exceed 1/3 of your monthly income.

In addition, when thinking about incurring debt You must plan and manage the money you earn well. To be able to repay debts on time and achieve the intended objectives without creating an excessive burden. This includes finding information from many financial institutions in order to compare and find loans that suit your needs and receive the most benefits. And don’t forget to read the contract and other documents. Understand carefully before entering into a loan contract.

Have many debts I don’t know how to fix it. Start solving it as follows.

• Sort the debt with the highest interest rate or sort the debt with the lowest balance.
• Plan debt management according to your abilities.
• Talk and negotiate with creditors

For example:

• Debt (informal) interest rate 140% per year, outstanding debt 10,000 baht, monthly installments 4,500 baht (pay in 3 months)
• Cash card debt Interest rate 25% per year, outstanding debt 10,000 baht, monthly installments 307 baht (minimum payment)
• Motorcycle leasing debt Interest rate 10% per year, outstanding debt 70,000 baht, monthly installments 2,000 baht.

You can start managing it immediately.

• Talk to informal creditors to request interest reductions. Ready to find a solution, such as borrowing money from the system to close.
• Request to change cash card debt to long-term loan To extend the time period and reduce installment payments
• Negotiate to reduce the motorcycle leasing installments. The burden will be shared a little more.

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