Suggestions for solving household debt in Thailand

Abstract

Household debt is not inherently problematic if it is used during times of necessity or to generate income, such as paying for medical expenses of family members, investing in a business, or purchasing a home, etc. It could be said that debt is a key mechanism within the economic system, as it transfers resources from individuals with surplus funds to those in need. Debt provides liquidity, enabling opportunity creation and helping individuals overcome financial challenges. However, borrowing should be limited to what is necessary and within one’s ability to repay. Thailand’s household debt continues to rise, in contrast to declining income levels and weakened debt-servicing capacity among its citizens. If this trend persists, it could eventually impact the economy at the macro level. Therefore, addressing the household debt problem is a critical issue that should not be overlooked.

The objective of this article is to summarize and analyze the current situation of household debt in Thailand, identify its underlying causes, and offer sustainable solutions. The information in this study is derived from document analysis and a review of related research, serving as a preventive measure against the escalation of bad debt. Hopefully, this article will serve as a valuable resource for households in preventing a debt crisis and building resilience against future debt cycles.