Thailand household debt surges to 16.42 trillion baht in Q4 2024
Thailand’s household debt reached 16.42 trillion baht in the fourth quarter of 2024, with more than half of the population having emergency savings of less than six months, the National Economic and Social Development Council (NESDC) reported on Monday.
The council’s secretary-general, Danucha Pichayanan, highlighted Thailand's economic report in Q1 2025 that Thai consumers exhibit a tendency towards luxury spending, which could lead to excessive debt accumulation.
Citing research from Mahidol University in 2024, he explained that one in three Thais prefers spending on luxury goods and premium services—including food, beverages, concert tickets, beauty treatments and collectibles—to enhance their image and gain social acceptance. However, this behaviour poses a risk of excessive debt.
The tendency stems from a desire for social recognition and status, with men exhibiting a stronger inclination than women. Men tend to purchase high-end technology, while women are more likely to spend on premium food and beverages.
Moreover, over 50% of people have emergency savings of less than six months, increasing their likelihood of falling into debt—especially during economic downturns or unforeseen events. This reflects a lack of financial literacy and inadequate financial planning.
Danucha further explained that household debt in Q4 2024 totalled 16.42 trillion baht, expanding by 0.2% due to stricter lending criteria, particularly among commercial banks that have consistently reduced loan approvals. As a result, the household debt-to-GDP ratio fell to 88.4% from 88.9% in the previous quarter.
When examining household debt by purpose, Q4 2024 saw a slowdown in property loans, which grew by 2.3%, down from 2.5% in the prior quarter, reflecting weakened purchasing power.
Similarly, personal loans and regulated personal loans expanded only by 3.9% and 1.4%, respectively, compared to 4.6% and 4.0% in the previous quarter.
On the other hand, auto loans contracted by 9.6%, following a drop in car and motorcycle sales. Credit card loans shrank by 3.4%, and business loans declined by 0.3% year-on-year.
Household credit quality also worsened. According to data from the National Credit Bureau (NCB), the value of non-performing loans (NPLs) exceeding 90 days reached 1.22 trillion baht in Q4 2024, expanding 16.4% year-on-year, accounting for 8.94% of total loans. This marked the fourth consecutive quarter of increase.
NPL ratios were particularly high in car leasing loans (27.25%) and commercial loans (22.02%), including small business and non-car leasing loans.
Conversely, the NPL ratio fell in housing loans, credit cards, and agricultural loans, while the rate for personal loans remained unchanged at 10.77%.
Regarding special mention loans (SMLs), or loans overdue between 30–90 days, the total value stood at 568 billion baht, 6.9% lower year-on-year, marking a decline for two consecutive quarters.
However, specific types of loans—particularly housing and commercial loans—saw an increase in SML ratios and values, indicating a potential rise in future bad debts.
Authorities may need to strengthen debt restructuring initiatives through programmes such as "You Fight, We Help," which is currently in operation, Danucha said.
