Before the annual major festival of Songkran, many wallets may be "empty" more than expected due to the impact of soaring oil prices and rising costs. Coupled with a worsening overall economy causing people to tighten their belts, these factors have changed Thai spending behaviors.
Recently, insights from Krungsri Consumer found that Thais are focusing more on value, reducing spending on luxury items. This is reflected in 2025 data showing a decrease in spending on luxury fashion brands and fine dining restaurants, while fast food restaurant spending grew by 9%.
Moreover, in health spending, expenses at large private hospitals decreased, whereas spending at government hospitals increased by 7%. These trends indicate cautious spending and customers seeking more cost-effective payment options. Additionally, the "installment payment" trend continues to grow, with consumers shifting from paying in full to splitting payments to better manage liquidity.
Maximizing credit card use during Songkran is not just about earning points but about "controlling the game" to prevent debt accumulation after the festival. Here are four practical debt management techniques:
1. Plan your "Songkran budget" and set spending limits.
Before starting your trip, set a "spending ceiling" for Songkran, for example, no more than 15,000 baht. You might separate this money into a savings account to clearly know your spending limit.
For credit cards, you can set a temporary daily spending limit in the app. This helps prevent "overspending" or impulsive big purchases during the festive atmosphere.
2. Use the "reserve cash to repay" technique.
Each time you use your credit card, transfer an equivalent amount of cash into a separate savings account (such as a high-interest digital deposit). This way, you can see your actual remaining cash, and when the bill is due, you will have the full amount ready to pay without borrowing from elsewhere.
3. Beware of the "interest" and minimum payment trap.
There’s no such thing as free money. Especially with credit cards, if you pay late or only the minimum, you face an interest rate of 16% per year. For a 30,000 baht balance, paying only the minimum means interest is calculated from the purchase date, not after the due date.
Additionally, if you pay late, you will incur debt collection fees: even one day late could cost about 50-100 baht per billing cycle plus 7% VAT.
4. Choose "0% installments" strategically.
For big purchases like new car tires or gifts for elders, opt for 0% installment plans instead of paying in full to spread costs over 3-10 months. However, total monthly installments across all cards should not exceed 10-20% of your net income to avoid impacting daily expenses.
Though the same credit card swipe, different loan types have varying interest rates. For example, credit cards have a maximum interest rate of 16% per year, while cash advance cards or personal loans may have rates above 20% per year.
Finally, regardless of loan type, you should clearly read the repayment terms to prepare enough money to pay at the end of the month and fully settle all your borrowed amounts.
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