Household debt hits all-time high, nearly 100% of Thais have debt
A Thai household debt survey this year revealed that almost every person in Thailand has household debt. But that’s not all, the average household debt hit an all-time high in the kingdom.
Today, the Centre for Economic and Business Forecasting of the University of the Thai Chamber of Commerce revealed the survey results, saying nearly 100% of Thai people had household debt, and that it had increased by 3.7% from last year.
One family had a debt of about 501,711 baht, which was the highest average recorded in the survey’s 16-year history.
One person had to pay a debt of 12,801 baht per month while 65.9% of the people surveyed admitted they had missed a debt payment because Covid-19 related circumstances, the economic crisis, and the inconsistency of income and expense.
Most of the debts were personal and linked to credit cards. People took loans to spend on consumer products and assets like cars and accommodation and others borrowed money to support their businesses.
According to the report, the increasing cost of living forced most Thai people into more debt. The economy is believed to be in a recovery stage making the expenses larger than the income. People also have a number of instalment payments for cars, houses, and electric appliances.
The participants who joined the survey suggested the government offer loans with low interest, provide knowledge of expense and debt management, and host training to develop working skills to gain more income from part-time work.
The Centre for Economic and Business Forecasting emphasised that the average household debt is high, but most of it is formal debt. This showed that Thai people could access credible financial resources.
The centre added that it is normal for middle class households to spend money on assets and have debt. If the Thai economy recovers and the number of tourists increases, the household debt situation will get better.
Due to the rise in the cost of living, two companies in Thailand announced that they would give away money to the staff. Siam Commercial Bank revealed it would provide staff 4,000 baht on September 1 while Dhipaya Life Assurance Public Company will provide a monthly extra money of 2,000 to staff for five months until the end of this year.
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