Thai Times

Covering the Thai Renaissance
Friday, Jul 04, 2025

Thailand's Household Debt Reaches 16.42 Trillion Baht in Q4 2024

Concerns arise over consumer spending habits and increasing debt accumulation amid stricter lending criteria.
As of the fourth quarter of 2024, Thailand's household debt has surged to 16.42 trillion baht, reflecting a year-on-year increase of 0.2%.

This rise occurs alongside stricter lending practices by commercial banks.

Danucha Pichayanan, secretary-general of the national economic council, noted that the debt-to-GDP ratio has decreased slightly to 88.4%, down from 88.9% in the previous quarter, indicating a complex balance between debt levels and economic growth.

Research conducted by Mahidol University in 2024 reveals significant consumer trends where approximately one in three Thai individuals prefers spending on luxury goods and premium services.

This behavior is largely driven by a desire for social recognition and improved status.

Men tend to invest in high-end technology while women are more inclined to spend on premium food and beverages.

These spending habits, however, come with the risk of excessive debt, particularly as more than half of the population holds emergency savings of less than six months.

The dynamics of household debt in Thailand show varied trends across different types of loans.

Property loans experienced a slowdown in growth, rising only 2.3% compared to 2.5% in the previous quarter, attributed to diminishing purchaser power.

Personal loans increased by 3.9%, though this marks a reduction from 4.6% in the prior quarter.

Regulated personal loans saw even smaller growth at 1.4%.

In contrast, auto loans contracted sharply by 9.6%, corresponding to a decrease in car and motorcycle sales, while credit card loans decreased by 3.4%.

Business loans also showed a modest decline of 0.3% year-on-year.

The quality of household credit has deteriorated, with non-performing loans (NPLs) exceeding 90 days rising to 1.22 trillion baht, an increase of 16.4% year-on-year.

This figure now represents 8.94% of total loans and marks the fourth consecutive quarter of increase.

Notably, the NPL ratios in car leasing loans and commercial loans stood particularly high at 27.25% and 22.02%, respectively.

Conversely, NPL ratios for housing loans, credit cards, and agricultural loans displayed a decrease, while the rate for personal loans remained steady at 10.77%.

The total value of special mention loans (SMLs), which are overdue between 30 to 90 days, is reported at 568 billion baht, reflecting a decline of 6.9% year-on-year, marking a decrease for two consecutive quarters.

However, there has been an increase in SML ratios and values for specific loans, particularly housing and commercial types, indicating potential future challenges in bad debts.

In response to these developments, there is a call for enhanced debt restructuring initiatives, exemplified by ongoing programs such as "You Fight, We Help," aimed at assisting those struggling with repayment.
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