Thais trapped in chronic debt as office workers on 30k live like labourers

At the “Life Fest 40+: Better to Know Early” event held at CentralWorld in Bangkok, Surapol Opasatien, Chief Executive Officer of the National Credit Bureau, warned that Thailand’s economy is entering a downturn, with household debt emerging as a critical risk factor. 

Without immediate intervention, the economy could expand by less than 1% — or not at all — in the final quarter of 2025, despite the usual year-end spending boost.

Surapol noted that government stimulus measures such as Khon La Khrueng (Let’s Go Halves) remain crucial. The Bank of Thailand recently projected only 1.6% GDP growth for 2026, and if companies continue to grow by no more than 2%, questions may arise about potential layoffs.

He added that Thailand’s financial crisis began during the Covid-19 pandemic, which caused widespread income loss between 2020 and 2023 — especially among 10 million self-employed workers. According to central bank data, it could take up to four to five years for their earnings to recover to pre-pandemic levels.

Currently, Thais are facing shrinking incomes, rising expenses, and escalating debt. Over the past three years, average income has grown by only 3%, while household spending — including debt repayment — has risen by 5%, creating a widening financial imbalance.

A Krungthai Bank study found that the average Thai household owes around 700,000 baht, including 100,000 baht of informal debt. Data from the National Credit Bureau shows 33 million debtors with over 13.5 trillion baht in total system-wide debt. Most liabilities are held by Gen X and Gen Y, together accounting for about 30 million people.

Gen X (41–45 years) carries the highest household debt burden, while Gen Y (29–45 years), numbering about 16 million, is dubbed the “tired generation” for having to support both parents and children.

By age group and loan type:

• 33-year-olds hold the most car loans (184,000 contracts).
• 43-year-olds hold the most home loans and credit cards.
• 57-year-olds carry the most agricultural loans.

Credit and loan patterns

• Car loans: Most common among those aged 21–27.
• Credit cards: There are 24 million credit cards in Thailand; 8 million have been inactive for two years, leaving 16 million active cards with combined debt of over 500 billion baht.
• Personal loans: Increasingly used for minor purchases — e.g. instalment payments for lipstick, shabu meals, or even coffee.
• Informal debt: Stemming from income shortfalls, these loans often carry interest rates up to eight times higher than formal credit.

The most serious debt distress occurs among office workers aged 40–45, many trapped in “chronic debt”. For instance, an office worker earning 30,000 baht per month typically spends 20,000 baht on debt repayment, leaving only 10,000 baht (about 300 baht per day) to live on.

Surapol said around 7.2 million Thais can afford to pay only interest on their debts, and 5.4 million are classified as being in “chronic debt”, merely rolling over payments without reducing the principal.

If no effective debt-relief measures are introduced within the next year, non-performing loans (NPLs) among Gen Y (31–45 years) could surge sharply. Gen X debt may stabilise through asset sales, while Baby Boomers could liquidate gold holdings to repay debt.

“Without debt repayment, people lose financial freedom — and regaining it can take years,” Surapol cautioned.

Looking ahead, he urged the government to make debt-restructuring a policy priority in 2026, noting that what Thais ultimately seek is financial literacy, fair access to credit, the ability to run profitable businesses, and to repay their debts on time.