Online trends fuel youth debt surge as Thai bad loans climb

Online reviews, social-media trends and digital financial influence are helping drive a sharp rise in debt among young Thais, even as Thailand’s household bad loans continue to climb, the National Economic and Social Development Council has warned.

Danucha Pichayanan, secretary-general of the NESDC, said in the council’s report on Thailand’s social situation in the first quarter of 2026 that household debt in the fourth quarter of 2025 edged up 0.05% to 16.44 trillion baht.

The increase pushed the household debt-to-GDP ratio to 86.7%, up from the previous quarter, underscoring the continued pressure on household finances.

Young borrowers show fastest debt growth

The NESDC said consumers aged under 25 had become a key group to watch, as their spending decisions were increasingly influenced by online reviews, viral trends and social-media content.

Outstanding credit card debt among this age group rose 13.5% in 2025, while personal loan debt increased 11.5%. Both were the highest growth rates among all age groups.

Danucha said the trend pointed to the need for stronger financial literacy from an early age, with the NESDC proposing that money-management skills be promoted from primary school level.

Bad loans continue to rise

Loan quality also deteriorated. Data from the credit bureau showed that non-performing loans, or debts overdue by more than 90 days, totalled 1.31 trillion baht, equal to 9.59% of total loans.

That was up from 9.45% in the previous quarter, with the increase driven mainly by housing loans and personal loans.

Special mention loans, or debts overdue by 31-90 days, also rose to 480 billion baht, accounting for 3.51% of total loans, compared with 3.09% in the previous quarter.

Virtual banks raise new debt concerns

The NESDC also warned that the launch of virtual banks could make it easier for some consumers to take on more debt if lending is not properly monitored.

Danucha cited China as an example, where online lending has made it easier for some borrowers to fall into debt cycles. He also pointed to the Philippines, where digital banks have recorded a higher proportion of non-performing loans than traditional banks.

The council said Thailand should closely monitor lending behaviour once branchless commercial banks begin operating.

NESDC urges tighter control of finfluencers

Another concern is the growing influence of “finfluencers” on household financial behaviour in the digital era.

The NESDC warned that some online financial content creators may provide incomplete or inaccurate information, potentially affecting investment decisions, borrowing behaviour and consumer confidence.

The council proposed that finfluencers should be regulated by requiring them to register with the Securities and Exchange Commission and obtain proper licences.

Consumer complaints jump 16.2%

The report also found that consumer complaints rose 16.2% in the first quarter of 2026, with three issues requiring close monitoring.

The first involved funeral assistance funds, some of which have faced liquidity problems, fraud or sudden closure, affecting large numbers of members.

The second involved new forms of online scams, including fraudulent sales of collectible cartoon cards. In some cases, scammers used AI-generated images to lure consumers into placing pre-orders before disappearing with the money.

The NESDC also warned of fake gold investment schemes on online platforms, in which criminal groups persuaded victims to trade or invest in non-existent gold products.

The third concern was the continued spread of copyright-infringing goods in both physical markets and online platforms.

The NESDC said these trends showed that household financial vulnerability was no longer limited to formal borrowing, but was increasingly linked to digital consumption, online influence and new forms of financial fraud.