Thai household debt could climb to 16.5–16.6 trillion baht by the end of 2026, with around half of Thais taking on debt from the age of 30 and many continuing to carry it into retirement.
Associate Professor Dr Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce (UTCC), said today, September 17, that household debt had become a structural problem requiring urgent attention.
Bank of Thailand data cited by Thanavath showed that around half of Thais begin carrying debt by the age of 30. By the age of 70, average outstanding debt remains close to 300,000 baht.
Only a small proportion of people are also able to save according to plan for retirement, he said.
Financial pressure has been particularly severe this year among households earning less than 30,000 baht per month.
Many are living from month to month, with income failing to cover living costs and forcing families to borrow more for everyday expenses or to keep household finances afloat.
Borrowing through formal channels has increasingly been used to support household cash flow, particularly through savings cooperatives, credit cards and non-bank lenders.
At the same time, borrowing from informal lenders has been declining.
Thailand’s household debt has risen from 16.31 trillion baht to 16.41 trillion baht, with Thanavath expecting the figure to reach 16.5–16.6 trillion baht by year-end.
Small and medium-sized businesses are facing similar liquidity pressure, with insufficient working capital and continued contraction in lending making access to credit another issue that needs attention.
Thanavath said high living costs remained one of the main reasons borrowers were falling behind on repayments.
Other pressures included an economy that had yet to recover fully, periods of weak agricultural prices and difficulties obtaining additional financing.
He said stronger economic growth, higher household and business incomes and continued debt restructuring could help reduce non-performing loans.
Conditions in the fourth quarter will depend partly on agricultural prices, tourism, exports, investment and oil prices, Thanavath added.
If those factors bring more money back into the economy, they could help ease liquidity pressure on households.
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