BANGKOK — Thai household debt totalled 16.42 trillion baht ($502 billion) in Q4 2024, bringing the debt-to-GDP ratio down to 88.4%, according to the National Economic and Social Development Council (NESDC).
However, officials are sounding the alarm over rising consumer behaviour and risky borrowing and are pushing for policy reforms, including the integration of cooperatives into the national credit bureau to tackle over-indebtedness.
Danucha Pichayanan, Secretary General of the NESDC, announced that household debt increased by only 0.2% year-on-year, marking the third consecutive quarter of slowdown. The slowdown is mainly due to more restrictive lending, particularly by commercial banks. As a result, the ratio of debt to GDP fell slightly from 88.9% in the previous quarter.
Despite the slowdown in credit growth, the quality of debt has deteriorated. Personal loans more than 90 days past due (NPLs) reached 1.22 trillion baht ($37.3 billion), accounting for 8.94% of total personal loans, up from 8.78% in the third quarter. Meanwhile, loans 30–90 days past due (SMLs) fell 6.9% year-on-year to 568 billion baht ($17.385 billion).
Two Major Concerns in Thailand’s Household Debt
1. Risky Consumer Behavior Fueled by Status-Driven Spending
According to a study conducted by Mahidol University in 2024, one in three Thais spends on luxury goods and premium services such as gourmet food, concert tickets, cosmetic treatments and collectibles in order to improve their image and gain social acceptance. This behaviour, driven by the desire for social recognition, increases the risk of over-indebtedness.
The study found gender-specific spending patterns:
- Men are more likely to spend on technology, fashion and food/beverages.
- Women spend primarily on food/drinks, cosmetics, skincare and fashion.
Around 50% of respondents have emergency savings for less than six months, making them more vulnerable to debt spirals during economic downturns or unexpected events. This reflects widespread gaps in financial education and planning.
2. Lack of Cooperative Integration into Credit Reporting Systems
Data from the Cooperative Promotion Department shows that cooperatives lent around 1.3 trillion baht (39.790 billion) to their members in 2024. However, only a few of these co-operatives are members of the credit bureau, making it difficult to comprehensively capture household debt.
The credit bureau data from Q3 2024 shows that credit union borrowers have the highest rate of bad debt compared to other borrowers. Most members are government officials, employees of state-owned enterprises or farmers, groups that are particularly at risk of incurring multiple debts without strict financial discipline.
The Prachuap Khiri Khan Teachers’ Savings Cooperative was cited as a successful example, where joining the credit bureau has helped to change financial behaviour. Through credit checks, counselling and data sharing with financial institutions, members gained access to loans that matched their repayment capacity. Linking credit union data to the credit bureau is therefore seen as an important tool to tackle household indebtedness and improve fair access to credit.
“The government should advocate for policies that integrate cooperatives into the credit bureau system to improve debt management and promote citizens’ long-term financial stability” Danucha said.
At the same time, NESDC stated that they have seen deteriorating security, rising alcohol and tobacco consumption, increasing cases of preventable diseases and a growing number of complaints about consumer protection.
Thailand’s social conditions in Q1 2025 showed employment figures declining 0.5%, unemployment rate at 0.88%, household debt up 0.2%, surveillance diseases increasing 64.1%, alcohol and tobacco consumption up 1%, criminal cases up 1.2%, and road accidents up 0.2%.
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