Thai household debt warning grows as living costs keep rising

Thailand’s household debt situation in 2026 is becoming one of the key warning signs for the Thai economy, after the Trade Policy and Strategy Office released the findings of its February 2026 survey on people’s debt burdens and future trends.

Based on a sample of 6,469 people nationwide, the survey found that the proportion of people with debt had risen to 62.44%, up from 50.99% in the same period of 2025.

The figures clearly reflect that “debt is growing” on a broad scale, under pressure from steadily rising living costs, while incomes for many people have yet to recover quickly enough.

Although people are becoming more financially cautious by cutting unnecessary expenses, planning their finances and avoiding new debt, structural constraints such as insufficient income and higher living costs mean many households still have to rely on borrowing to keep going.

Broken down by occupation, the groups with the highest proportions of debt were state employees, farmers and self-employed workers.

Their formal debt proportions were as high as 89.09%, 82.71% and 80.28%, respectively.

State employees, whose incomes are relatively stable, were nevertheless among the groups with high debt, reflecting easier access to credit as well as borrowing behaviour aimed at buying assets such as houses and cars.

Farmers and self-employed workers, meanwhile, had different debt patterns, often borrowing for working capital and to cope with income uncertainty, especially in the agricultural sector, which depends on external factors such as weather and agricultural product prices.

High earners are not immune to debt

Another key issue is the debt structure by income level.

The survey found that people earning more than THB50,000 a month had the highest proportion of debt, followed by those earning THB10,001–50,000.

This trend reflects that having a high income does not mean being debt-free; instead, such groups tend to take on more debt because of credit access and investment in assets.

By contrast, lower-income groups, particularly those earning less than THB20,000 a month, often borrow for daily expenses such as food, travel and other essential costs.

More worrying is that people earning less than THB10,000 had a higher proportion of borrowing caused by unstable income and emergency expenses than other groups, pointing to financial vulnerability and the risk of falling into a chronic debt cycle.

Online loans surge as young people face greater risks

Looking at the types of debt, borrowing from financial institutions remained the main source, accounting for 23.23%, followed by credit cards at 19.90%, online loans at 12.90% and co-operatives at 12.87%.

A key shift is the rapidly growing role of “online loans”, especially among younger people.

The data showed that people aged 20–29 used online loans at a high rate of 27.25%, while students recorded 31.55%, the highest of all groups.

Although online loans improve access to funds, they also increase the risk of excessive borrowing, especially among those without a stable income.

Low incomes, heavy monthly repayment burden

In terms of monthly repayments, most people paid no more than THB5,000 a month, accounting for 38.91%, followed by no more than THB10,000 (34.59%) and THB10,000–30,000 (19.29%).

Although these figures may not appear high, when compared with income, especially among low-income groups, they amount to a heavy burden and directly affect quality of life.

At the same time, higher-income groups have higher repayment burdens, but they have greater capacity to manage them.

When asked about the reasons for borrowing, daily living expenses ranked first at 29.06%, followed by asset purchases, such as houses and cars, at 25.83%, and investment at 13.45%. In some age groups, such as those under 20 and over 60, the proportion of debt arising from luxury spending was high, reflecting problems with financial discipline.

For most people, however, especially lower-income groups, borrowing does not stem from “desire” but from “necessity” in daily life.

Low-income workers face overlapping crises

The clearest picture of the debt problem is seen among workers earning no more than THB15,000 a month.

A survey of 1,250 respondents found that 98% had debt.

Average debt per household was as high as THB494,500, with monthly repayments of about THB18,800, a very high level compared with income.

Importantly, most debt did not arise from investment but from borrowing for daily expenses and repaying existing debt, reflecting a debt cycle that is difficult to escape.

No savings and insufficient income deepen vulnerability

More than 79.1% of workers said they had no savings or were unable to save money, while only 20.9% had savings.

The main factor was rising living costs, with 59.5% saying product prices had a major impact on their lives.

At the same time, debt and interest burdens that remained high, together with higher social security contributions, further reduced net income and affected liquidity.

Although the survey found that 61.84% of people had no plan to take on more debt in 2026, those who still needed to borrow faced pressure from essential expenses.

The main reason was higher regular expenses, at 15.52%, followed by repayment of existing debt and investment.

Broken down by occupation, business owners borrowed to “keep their businesses afloat” rather than expand them, while farmers and self-employed workers borrowed because their incomes were uncertain.

Salaried employees focused on borrowing to buy assets.

By income, the THB20,001–30,000 group was most likely to borrow, while those earning above THB40,001 tended to slow borrowing.

Solutions must address the whole system

Overall, the picture shows that Thailand’s household debt problem is not merely a matter of spending behaviour, but structural.

Even though people are trying to adjust, the debt problem will remain if income still does not match living costs.

Solving the problem must therefore proceed in parallel: increasing income, reducing the cost-of-living burden, promoting financial discipline and introducing targeted support measures.

If household debt is allowed to keep rising, it will not only affect people’s quality of life but could also become a “time bomb” affecting Thailand’s long-term economic stability.