Commerce Ministry Reports Cost-of-Living Crisis Pushes Thai Household Debt to 62% with Average Monthly Installments of 5,000 Baht—Students Lead in Online Borrowing
Thailand's household debt ratio jumped to 62% in 2024 as rising costs squeeze family finances, with students leading borrowing through online platforms and average monthly installments reaching 5,000 baht.
Nanthapon Jiralertsupong, director of the Commerce Ministry's Policy and Trade Strategy Office, unveiled survey results from February 2025 based on 6,469 respondents across Thailand regarding public debt and future trends. The household debt ratio increased slightly in 2024 due to rising daily expenses, while 2025 shows greater financial caution among the public. However, income uncertainty and essential expenses remain critical factors affecting household finances.
The survey found that 62.44% of Thais carry debt, up from 50.99% previously. By occupation, government employees, farmers, and freelancers show the highest debt proportions. Higher-income groups paradoxically carry proportionally more debt, with those earning over 50,000 baht monthly showing the highest debt ratios.
Of those with debt, 78.86% rely solely on formal credit sources, while 13.72% use both formal and informal sources, and 7.43% depend entirely on informal lending. Government employees, private sector workers, and students have the highest rates of formal credit usage at 89.09%, 82.71%, and 80.28% respectively. Retirees and self-employed workers show significantly higher informal debt burdens, reflecting limited access to legal credit sources.
Regarding debt types, formal financial institution loans lead at 23.23%, followed by credit cards at 19.90%, online installment platforms at 12.90%, and cooperative loans at 12.87%. People under 29 years old show significantly higher online platform borrowing rates. Young adults aged 20-29 have the highest proportion at 27.25%, while those 40 and older primarily use formal institutions. Students dominate online platform borrowing at 31.55%, followed by education fund loans.
For monthly installment payments, most Thais (38.91%) pay no more than 5,000 baht monthly, with 34.59% paying up to 10,000 baht, and 19.29% paying 10,000-30,000 baht monthly.
