Report Thailand's Household Debt Soars to 16.42 Trillion Baht with Rising Risks

[snoop1130]

File photo for reference only

 

Thailand's household debt hit a staggering 16.42 trillion baht in the fourth quarter of 2024, as reported by the National Economic and Social Development Council (NESDC). The report, shared on Monday, reveals that more than half of the population holds less than six months' worth of emergency savings, highlighting significant financial vulnerability.

 

Danucha Pichayanan, NESDC's secretary-general, noted in the Q1 2025 economic report that Thai consumers exhibit a marked tendency towards luxury spending. This consumer behaviour raises concerns about excessive debt accumulation, as people seek social acceptance and status through purchasing luxury goods and premium services.

 

Research from Mahidol University in 2024 underscores this trend, showing that one in three Thais prefers spending on luxury items like high-end food, beverages, concert tickets, beauty treatments, and collectibles. Men are particularly inclined towards high-end technology purchases, whereas women tend to spend more on premium food and beverages. This spending behaviour contributes to financial strain and potential debt escalation, especially for those lacking robust financial literacy and planning.

 

In Q4 2024, household debt rose slightly by 0.2%, reflecting tighter lending criteria among commercial banks that have been progressively reducing loan approvals. However, the household debt-to-GDP ratio modestly declined to 88.4% from 88.9% in the previous quarter, as stringent lending conditions curtailed borrowing.

 

The report indicates a slowdown in property loans, which saw a growth of just 2.3%, down from 2.5% in the prior quarter, signifying weakened purchasing power among consumers. Similarly, personal loans and regulated personal loans grew by 3.9% and 1.4%, respectively, both slower than in previous quarters.

 

In contrast, auto loans contracted sharply by 9.6%, attributed to declining car and motorcycle sales, while credit card loans and business loans decreased by 3.4% and 0.3% year-on-year, respectively.

 

Credit quality also deteriorated, with non-performing loans (NPLs) over 90 days past due reaching 1.22 trillion baht in Q4 2024, an increase of 16.4% from the previous year. These NPLs represent 8.94% of total loans, marking a concerning upward trend for the fourth consecutive quarter. Car leasing and commercial loans, including those for small businesses, exhibited particularly high NPL ratios of 27.25% and 22.02%, respectively.

 

Conversely, the NPL ratio for housing, credit card, and agricultural loans showed improvement, while personal loan defaults remained steady at 10.77%. Regarding loans overdue by 30-90 days, known as special mention loans (SMLs), the total value decreased by 6.9% to 568 billion baht, marking a positive downturn for two consecutive quarters despite increases in SML ratios for housing and commercial loans.

 

Given these challenges, authorities may need to bolster debt restructuring initiatives. Programs like "You Fight, We Help" are already in place to assist those struggling with debt management and promote financial stability moving forward.

 

  Adapted by ASEAN Now from The Nation 2025-06-09

 

 

[whiteman]

Maybe the sky is falling after all

[NorthernRyland]

Debt is so insidious. The more debt in the system the higher people can raise prices in order to match the levels of debt. Housing is now more expensive than it should be  and the winners are the banks and the property owners/developers.

[ikke1959]

Please more holidays and more pushing to spend your money with tax incentives and more.. buy now pay later ... show your luxury even if you don't have money... and see what is happening... No investment in education how to deal withy your wage and money, no good registration to prevent that people borrow more than they can pay back, no.. the elite and officials who owns the companies must make profits at all costs

[deja vu again]

TFB!  People should live within their means and stop pretending to be someone they are not.  Let them eat rice.

[Cameroni]

So what's the average debt per househould? Are you seriously going to make me do complex maths at quarter to eleven at night?

[StayinThailand2much]

On 6/9/2025 at 4:22 PM, snoop1130 said:

Thailand's household debt hit a staggering 16.42 trillion baht in the fourth quarter of 2024 (...)

 

No worries; that's only 757,000 baht per household (21.7 million in 2022)... Can easily be repaid with 2,000 baht, or so, per month (if people keep their jobs)... 😆 

[bannork]

And the government want to introduce legal casinos.

For crying out loud  

 

 

[it is what it is]

2 hours ago, deja vu again said:

TFB!  People should live within their means and stop pretending to be someone they are not.  Let them eat rice.

 

thai's are not alone in their inability to do this, for example, norway and denmark lead in terms of household debt as a percentage of disposable income, with Norway at 246.30% and Denmark at 244.11%. The netherlands also has a high percentage, at 228.20%. so all in all, thailand isn't that bad  

[watchcat]

8 hours ago, StayinThailand2much said:

(if people keep their jobs)..

 

...or goes to them after their monthly salary.

[blaze master]

7 hours ago, it is what it is said:

 

thai's are not alone in their inability to do this, for example, norway and denmark lead in terms of household debt as a percentage of disposable income, with Norway at 246.30% and Denmark at 244.11%. The netherlands also has a high percentage, at 228.20%. so all in all, thailand isn't that bad  

 

Thanks for this. Quite interesting as its always claimed they are quite happy countries. 

 

With a dark secret it seems. 

 

[StayinThailand2much]

7 hours ago, it is what it is said:

 

thai's are not alone in their inability to do this, for example, norway and denmark lead in terms of household debt as a percentage of disposable income, with Norway at 246.30% and Denmark at 244.11%. The netherlands also has a high percentage, at 228.20%. so all in all, thailand isn't that bad  

 

Yes, but I'd think that (almost) 760,000 baht debt per household is still a lot...

[lordgrinz]

9 hours ago, StayinThailand2much said:

 

No worries; that's only 757,000 baht per household (21.7 million in 2022)... Can easily be repaid with 2,000 baht, or so, per month (if people keep their jobs)... 😆 

 

2000 baht would barely cover the interest per month.

[lordgrinz]

Since banks are turning down loans, this means people (especially the poor) are more than likely going with loans from loansharks. So, you can bet the debt is worst than even these numbers show. 

[traveller101]

According to a source that cannot be named, Thai household debt climbs to 104% of GDP in Q4 2024.

This includes informal loans which are not counted in official statistics released by the bank of Thailand.

[Jedi888]

Thai's are spend freaks. Then they cry "i am hab no minneyyyyy". 

[sidneybear]

On 6/9/2025 at 9:34 PM, NorthernRyland said:

Debt is so insidious. The more debt in the system the higher people can raise prices in order to match the levels of debt. Housing is now more expensive than it should be  and the winners are the banks and the property owners/developers.

True. Look at places like Australia, where housing has been made unaffordable to most people who don't already own a house. Savers are penalised, inflation destroys wealth, and small increases in interest rates are a national emergency, because everyone is buried under huge mortgages. 

[StayinThailand2much]

2 hours ago, lordgrinz said:

 

2000 baht would barely cover the interest per month.

 

Yeah, it was actually an ironic comment... Many families might even struggle repaying 2,000 baht a month, so good luck with 757,000 baht debt... 

[lordgrinz]

26 minutes ago, sidneybear said:

True. Look at places like Australia, where housing has been made unaffordable to most people who don't already own a house. Savers are penalised, inflation destroys wealth, and small increases in interest rates are a national emergency, because everyone is buried under huge mortgages. 

 

Could be worse, in the USA we pay exorbitant amounts of property taxes on our homes, so basically we rent our property from the government under threat of them seizing it if you don't. Which is why I told my wife she should think very carefully before voting for any government here that encourages property taxes.

[NorthernRyland]

38 minutes ago, sidneybear said:

True. Look at places like Australia, where housing has been made unaffordable to most people who don't already own a house. Savers are penalised, inflation destroys wealth, and small increases in interest rates are a national emergency, because everyone is buried under huge mortgages. 

 

If banks couldn't create credit the only money they would have to issue for mortgages would come from savings and this wouldn't be enough to cause crazy things like 30 year mortgages. Before the term of the mortgage is even up more money is in the system now and the price of the house rises so you can sell it and buy new more expensive ones.

 

This churning of homes through many hands has gone on for so long the bar to entry is getting so high new buyers can't even enter the market.  On top of all of this we have too many restrictions on building and endless immigration forcing demand so the market can never stabilize at lower price points.

 

They've totally screwed all the younger people. Not just Australia this is happening in lots of countries.

[NorthernRyland]

24 minutes ago, lordgrinz said:

Could be worse, in the USA we pay exorbitant amounts of property taxes on our homes, so basically we rent our property from the government under threat of them seizing it if you don't. Which is why I told my wife she should think very carefully before voting for any government here that encourages property taxes.

 

People literally have to sell their house and move because property taxes price them out. How is that not a shakedown? You could live in the same house your whole life and if the market goes up you can't afford to live in the house you already bought and paid for.

 

The local government and public sector are so greedy. It's infuriating.

 

[ExpatOilWorker]

11 hours ago, it is what it is said:

 

thai's are not alone in their inability to do this, for example, norway and denmark lead in terms of household debt as a percentage of disposable income, with Norway at 246.30% and Denmark at 244.11%. The netherlands also has a high percentage, at 228.20%. so all in all, thailand isn't that bad  

Not a relevant comparison. The nanny states are forcing the Scandinavians to have equal high pension savings.

That was covered extensively by the WSJ long ago.

 

[sidneybear]

5 hours ago, lordgrinz said:

 

Could be worse, in the USA we pay exorbitant amounts of property taxes on our homes, so basically we rent our property from the government under threat of them seizing it if you don't. Which is why I told my wife she should think very carefully before voting for any government here that encourages property taxes.

Australia taxes property too, in the form of council rates, as do most places. 

[Dan O]

5 hours ago, StayinThailand2much said:

 

Yeah, it was actually an ironic comment... Many families might even struggle repaying 2,000 baht a month, so good luck with 757,000 baht debt... 

Each household doesn't hold that amount of debt. Thats the cumulative debt in the country  divided by the number of citizens, including business. The debt level is still ridiculous and can't be solved easily. But the do drive nice cars and trucks, have nice designer knockoff clothes but live in a 2 room shack 

[sidneybear]

22 hours ago, NorthernRyland said:

 

If banks couldn't create credit the only money they would have to issue for mortgages would come from savings and this wouldn't be enough to cause crazy things like 30 year mortgages. Before the term of the mortgage is even up more money is in the system now and the price of the house rises so you can sell it and buy new more expensive ones.

 

This churning of homes through many hands has gone on for so long the bar to entry is getting so high new buyers can't even enter the market.  On top of all of this we have too many restrictions on building and endless immigration forcing demand so the market can never stabilize at lower price points.

 

They've totally screwed all the younger people. Not just Australia this is happening in lots of countries.

That's right. Banks operate on a fractional reserve system, whereby they don't need to hold deposits in reserve that equal the value of the money they lend. This means that they produce loans out of thin air.

[ExpatOilWorker]

17 hours ago, Dan O said:

Each household doesn't hold that amount of debt. Thats the cumulative debt in the country  divided by the number of citizens, including business. The debt level is still ridiculous and can't be solved easily. But the do drive nice cars and trucks, have nice designer knockoff clothes but live in a 2 room shack 

Not correct. Corporate debt, which is about 6.5 trillion baht and public debt is not included in household debt.

BOT has the breakdown. 

Household debt is of course not evenly distributed.  Many Thais are debt free, while others, among them teachers, have millions in debt.