Household debt surges to 15-year high, almost all Thais in debt: survey
Average household debt has reached its highest level in 15 years and almost all households are in debt, according to a survey by the University of the Thai Chamber of Commerce (UTCC).
UTCC rector Thanavath Phonvichai told a press conference on Thursday that 99.8% of the 1,300 people surveyed nationwide from July 17 to 21 reported being in debt.
Average household debt was 559,408.7 baht, the highest level in 15 years, Thanavath said, adding that on average, each family had to pay about 16,742 baht per month to service debt.
The survey found that 80.2% of the respondents borrowed money from banks or finance companies, 19.8% borrowed from lenders outside the banking system, and 31.2% were in debt to both banks and non-bank lenders, he said.
Many Thais are still reeling from the impact of the Covid-19 pandemic and the trade war between China and the United States, while Thailand’s economy is recovering at a pace that is too slow, Thanavath said.
About 65.8% of the respondents earned less than they spent, while 32.2% said they earned only enough for their expenses, while only 2.2% said they earned more than expenses.
Household debt will continue to rise until next year before gradually falling after the economy has fully recovered, the university forecasts.
