Thai household debt nears THB800,000, highest in 17 years

Average household debt in Thailand has risen to nearly THB800,000, reaching its highest level in 17 years, according to a 2026 survey by the University of the Thai Chamber of Commerce (UTCC).

Thanavath Phonvichai, president of UTCC and chief adviser to the Centre for Economic and Business Forecasting, said on Thursday (September 17, 2026) that household debt remained a structural problem for the Thai economy requiring urgent attention.

Although the household debt-to-GDP ratio has declined, households’ ability to repay debt remains weak, particularly among low-income earners and those facing high expenses, he said.

The nationwide survey was conducted from September 7-13 among 1,720 respondents. It found that 91.8% were in debt, down from 95.1% in 2025, while 8.2% reported having no debt.

Average debt rises 7.3%

Average debt per household increased to THB794,945.49 from THB740,596.94 in 2025, a rise of 7.3%.

Of the debt reported, 77.2% was within the formal financial system and 22.8% was informal. Average monthly repayments climbed to THB21,935.31, up 8.11% from the previous year.

Thanavath said the average debt figure was the highest recorded since UTCC began conducting its household debt survey in 2009, making it a 17-year high.

The findings showed that debt continued to weigh on household purchasing power and liquidity even as the debt-to-GDP ratio trended lower.

The survey also found that 72% of respondents had only formal debt, up sharply from 50.9% in 2025.

Those with only informal debt fell to 5% from 15.4%, while the proportion carrying both formal and informal debt declined to 23% from 33.7%.

Credit cards top household borrowing

Credit card debt was the most common type of borrowing in 2026, reported by 55.1% of respondents.

This was followed by personal loans for consumption at 45.8%, vehicle loans at 41.9%, business loans at 33.6% and housing loans at 27.2%.

Buy Now Pay Later (BNPL) debt rose to 14.2% from 6.2% a year earlier.

Among those using personal loans and credit cards, 23.6% borrowed for general consumption, 21.8% to buy durable goods, 13.5% for electronic devices and 12.1% to repay existing debt.

The figures indicated that some borrowing was being used to sustain everyday spending and roll over existing financial obligations.

Among respondents borrowing for business purposes, 57.2% used the money as working capital or to support liquidity, up from 32.5% in 2025.

A further 19.5% borrowed for new agricultural investment and 7.8% for business expansion.

Weak recovery keeps pressure on households

Thanavath said the findings were consistent with an economy that had yet to show a strong recovery, while household and business incomes had increased only modestly.

Many households therefore continued to rely on borrowing to maintain liquidity, while living costs, particularly energy expenses, remained a significant burden.

Asked what had driven their debt higher from the previous year, 15.6% of respondents cited family financial commitments, 15.5% said income was insufficient to cover expenses, and 14.1% pointed to higher living costs.

Unexpected financial emergencies were cited by 11.8%, while 9.4% said they had taken on additional debt to invest in a business.

Repayment ability remains fragile

The survey found that 73.1% of respondents were still able to make repayments on schedule.

However, 16.1% estimated they could continue making payments for no more than six months, 8.9% said they could manage for no more than three months, and 1.9% said they were unable to repay their debts.

Some 67.5% of respondents had experienced missed instalments or defaults during the previous 12 months.

The main reason was unexpected expenses, cited by 32.2%, followed by falling income at 24.8%, weak economic conditions at 21.3%, higher repayment amounts at 11.4% and unemployment at 10.4%.

Borrowers remain pessimistic about next year

Respondents also remained cautious about household debt over the coming year.

Some 25.2% expected the situation to worsen slightly, while 18.9% believed it would deteriorate significantly or become more severe.

Only 5.9% expected a slight improvement, while 4% believed the situation would improve substantially or be resolved.

Asked about sustainable solutions to household debt, 20.7% gave the highest priority to increasing incomes or raising wages.

Financial education followed at 17.7%, improvements to social security or the social safety net at 16.3%, and debt restructuring programmes at 15.4%.

For measures requiring the most urgent action, 21.1% supported raising the minimum wage or restructuring wages, 16.2% called for a comprehensive household debt database, and 15.8% wanted tighter controls on advertising for financial products.

Another 11% supported measures to promote long-term savings and investment.

Total household debt could reach THB16.6 trillion

Thanavath estimated that Thailand’s total household debt could rise to around THB16.5-16.6 trillion by the end of 2026 as economic conditions and household liquidity constraints continued to pose challenges.

However, if Thailand’s economy grows by 2.5% in 2026 under the centre’s base-case scenario, the household debt-to-GDP ratio is expected to fall from 85.9% in the first quarter to around 84% in the fourth quarter.

If GDP grows by 2%, the ratio is projected at 84.4%, while growth of 2.8% could bring it down to 83.7%.

UTCC cautioned that a lower debt-to-GDP ratio should not be interpreted as evidence that Thailand’s household debt problem has eased.

Part of the decline reflects greater caution among financial institutions in extending credit, while household finances and debt-servicing capacity remain fragile.