Thailands Household Debt Hits Record High in 2026 Amid Rising Living Costs and Insufficient Income

The University of the Thai Chamber of Commerce revealed that household debt in 2026 soared to a record average of nearly 800,000 baht per household, with monthly repayments exceeding 20,000 baht. The main causes are insufficient income and high living costs.

Household debt in 2026 reached the highest level since 2009.

Mr. Thanawat Polvichai, President and Chairman of the Economic and Business Forecasting Center at the University of the Thai Chamber of Commerce, shared results from a 2026 household debt survey of 1,720 respondents, finding that household debt remains a structural problem needing urgent solutions. Although the debt-to-GDP ratio in the second quarter dropped to 85.2%, debt servicing ability remains weak, especially among low-income groups.

The survey found 91.8% of respondents carried debt, with average household debt reaching 794,945.49 baht, up 7.3% from 2025's 740,596.94 baht. This is the highest debt level since the forecasting center began surveys in 2009, with 77.2% from formal financial institutions and 22.8% informal debt. Consequently, individuals bear an average monthly repayment of 21,935.31 baht, an 8.11% increase.

Income insufficient to cover expenses is the main factor driving rising debt.

The key reasons for increased debt are structural income shortfalls relative to expenses, rising living costs, unexpected emergencies requiring funds, and investments in business ventures.

Credit cards and personal loans top the list as the largest debts.

Examining debt types, the proportion of those with only formal debt rose to 72%, while those with only informal debt fell to 5%. The top five debt categories are:

• Credit card debt at 55.1%,
• Personal consumption loans at 45.8%,
• Vehicle loans at 41.9%,
• Business loans at 33.6%,
• Housing loans at 27.2%.

Additionally, Buy Now Pay Later (BNPL) services increased to 14.2%, reflecting that most debt is used for consumption and daily cash flow support.

Household debt expected to reach 16.6 trillion baht by year-end.

Mr. Thanawat estimates Thailand's household debt could rise to 16.5–16.6 trillion baht by the end of 2026. Although the debt-to-GDP ratio may fall to about 84% (if GDP grows 2.5%), this does not mean the debt problem is easing. Rather, it reflects financial institutions being more cautious in lending while households' financial status remains fragile.

Relevant sectors need to urgently address structural issues, such as revising wage structures, developing comprehensive household debt data systems, regulating financial product advertising that encourages debt, and concretely promoting long-term savings discipline.

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