What To Know
- Thailand’s household debt burden has climbed to its highest level in 17 years, with average debt approaching THB800,000 per household as families contend with rising living expenses, modest income growth and persistent pressure on their finances.
- According to this Bangkok Business News report, UTCC President and Chief Adviser to the Centre for Economic and Business Forecasting Thanavath Phonvichai said household debt remained a structural economic problem requiring urgent attention, particularly among lower-income households and families facing elevated expenses.
Thailand’s household debt burden has climbed to its highest level in 17 years, with average debt approaching THB800,000 per household as families contend with rising living expenses, modest income growth and persistent pressure on their finances. A new nationwide survey by the University of the Thai Chamber of Commerce (UTCC) found average household debt reached THB794,945.49 in 2026, up 7.3% from THB740,596.94 a year earlier.
Image Credit: Bangkok Business News
The findings underline a growing contradiction in Thailand’s economy: while the country’s household debt-to-GDP ratio has been declining, many borrowers are still struggling to meet monthly obligations. According to this Bangkok Business News report, UTCC President and Chief Adviser to the Centre for Economic and Business Forecasting Thanavath Phonvichai said household debt remained a structural economic problem requiring urgent attention, particularly among lower-income households and families facing elevated expenses.
Debt Reaches Highest Level Since Survey Began
The nationwide survey, conducted from September 7-13 among 1,720 respondents, found that 91.8% were carrying debt. Although this was lower than 95.1% in 2025, the amount owed by indebted households continued to rise sharply.
Average household debt increased by 7.3% to THB794,945.49, the highest figure recorded since UTCC began its household debt survey in 2009. Monthly debt repayments also increased, rising 8.11% from the previous year to an average THB21,935.31.
Formal borrowing accounted for 77.2% of reported debt, while informal borrowing represented 22.8%.
There were some encouraging signs in the composition of borrowing. The proportion of respondents carrying only formal debt increased substantially to 72%, from 50.9% in 2025. Those relying exclusively on informal borrowing declined from 15.4% to 5%, while respondents carrying both formal and informal debt fell from 33.7% to 23%.
Nevertheless, the rising overall debt burden continues to restrict household liquidity and purchasing power.
Credit Cards Dominate Borrowing
Credit cards emerged as the most common source of household borrowing, reported by 55.1% of respondents. Personal loans used for consumption followed at 45.8%, vehicle loans at 41.9%, business loans at 33.6% and housing loans at 27.2%.
One particularly notable increase involved Buy Now Pay Later services. BNPL debt more than doubled, rising from 6.2% of respondents in 2025 to 14.2% this year.
The reasons households borrowed also highlighted the financial pressure facing consumers. Among people using personal loans and credit cards, 23.6% borrowed to cover general consumption, while 21.8% financed durable goods and 13.5% borrowed for electronic devices.
Another 12.1% used new borrowing to repay existing debt, suggesting that some households are effectively shifting financial obligations rather than reducing them.
Business borrowers are also seeking liquidity. Among respondents borrowing for business purposes, 57.2% used funds for working capital or liquidity, compared with 32.5% last year. Another 19.5% borrowed for new agricultural investments and 7.8% for business expansion.
Living Costs Keep Families Under Pressure
Thanavath said the survey findings reflected an economy that had yet to experience a strong recovery, with household and business incomes recording only modest improvements.
Asked why their debt had increased, 15.6% of respondents cited family financial commitments, while 15.5% said their income was insufficient to cover expenses. Higher living costs were cited by 14.1%, followed by unexpected financial emergencies at 11.8%.
Another 9.4% said they had increased borrowing to invest in a business.
Energy expenses and other everyday costs remain significant burdens, leaving many households dependent on credit to maintain spending and liquidity even when their longer-term ability to service additional debt is uncertain.
Missed Payments Reveal Deeper Vulnerability
The survey found that 73.1% of respondents said they were still able to make repayments on schedule. However, the outlook becomes more concerning when borrowers are asked how long they believe they can continue doing so.
Some 16.1% estimated they could maintain payments for no longer than six months, while 8.9% said they could manage for only another three months. A further 1.9% said they were already unable to repay their debts.
More significantly, 67.5% reported experiencing missed installments or defaults at some point during the previous 12 months.
Unexpected expenses were the leading reason, cited by 32.2% of respondents who experienced repayment problems. Falling income accounted for 24.8%, weak economic conditions for 21.3%, higher repayment amounts for 11.4% and unemployment for 10.4%.
Borrowers See More Trouble Ahead
Households remain cautious about the year ahead. Some 25.2% of respondents expected their debt situation to worsen slightly, while 18.9% anticipated a significant or more severe deterioration.
By comparison, only 5.9% expected conditions to improve slightly, while 4% believed their debt situation would improve substantially or be resolved.
When asked about sustainable solutions, 20.7% prioritized higher incomes or wages. Financial education was selected by 17.7%, stronger social security or safety nets by 16.3%, and debt restructuring programs by 15.4%.
For urgent measures, 21.1% favored raising the minimum wage or restructuring wages. Another 16.2% called for a comprehensive household debt database, while 15.8% supported tighter controls on financial-product advertising.
National Debt Could Reach THB16.6 Trillion
Thanavath estimated Thailand’s total household debt could reach approximately THB16.5 trillion to THB16.6 trillion by the end of 2026.
Under the center’s base-case scenario of 2.5% economic growth, household debt as a share of GDP could decline from 85.9% in the first quarter to approximately 84% in the fourth quarter. With 2% growth, the ratio is projected at 84.4%, while growth of 2.8% could reduce it to 83.7%.
However, UTCC cautioned against interpreting a declining debt-to-GDP ratio as proof that household finances have fundamentally improved. Part of the decline reflects greater caution among financial institutions when extending credit rather than a substantial improvement in borrowers’ financial health.
The survey ultimately points to a debt problem increasingly defined not simply by how much Thai households owe, but by whether their incomes can keep pace with repayments and everyday expenses. Without stronger income growth, improved household liquidity and sustainable restructuring options, declining headline debt ratios may conceal continuing financial vulnerability among millions of borrowers.
