Thai Household Debt and Psychology Based on Maslow's Hierarchy of needs Theory

Abstract

Household debt is money that financial institutions lend to individuals. Use the borrowed money for consumption, business, education, health care, and purchasing housing. Household debt is therefore an obligation for the borrower to repay the debt.

Household debt arises from personal needs based on the idea that things are necessary. According to the psychology of Maslow's Hierarchy of Needs theory, human needs arise from lack and when they are adequately met. The order of needs will increase, namely wanting complete prosperity for a good quality of life. Increased demand results in increased spending behavior of households. causing households to fall into debt traps Lack of liquidity and financial freedom. The way to deal with household debt is for households to have financial knowledge. To be used in planning spending and savings within the family to suit their status. and adhere to the Sufficiency Economy Philosophy to apply in life on the basis of being mindful, reasonable, fit and happy.