Thailand’s household debt remains a significant economic challenge, standing at 13.5 trillion baht as of the first quarter of 2025, according to the National Credit Bureau (NCB). Despite a slight decrease in non-performing loans (NPLs), the overall debt burden continues to weigh on the country’s economic outlook.
Surapol Opasatien, head of the NCB, reported a dip in NPLs to 1.19 trillion baht, a reduction of 30 billion baht since January. However, this decrease is offset by a substantial increase in proactive debt restructuring, indicating a growing number of borrowers struggling to meet their financial obligations. The NCB data, compiled from over 160 financial institutions, accounts for 13.5 trillion baht of the total 16.2 trillion baht in national household debt.
The NCB’s analysis reveals that 5.15 million individuals, representing 9.13 million accounts, are currently affected by awful debt. A particularly concerning trend is the prevalence of smaller debts, those under 100,000 baht, which collectively amount to 120 billion baht – approximately 10% of all NPLs – and impact 3.28 million borrowers across 4.44 million accounts.
Surapol Opasatien has advocated for a more compassionate approach to addressing these smaller debts, many of which are unsecured and have already been fully provisioned for by creditors. He questioned the value of prolonged legal action against individuals with limited repayment capacity, suggesting that facilitating their return to the workforce would be more beneficial to the economy. “Wouldn’t it be better to help them become a working force driving the economy? Is 10 years of lawsuits and enforcement worthwhile?” he asked in a recent Facebook post.
The broader picture of Thai household debt reveals a consistent upward trend. Data from the NCB shows that bad household debt rose by 25% from the finish of 2022, reaching a record high of 1.23 trillion baht as of January 2025. NPLs totaled 980 billion baht at the end of 2022, increasing to 1.05 trillion baht at the end of 2023 and 1.22 trillion baht at the end of 2024. Troubled debt restructuring (TDR) has also risen steadily, reaching 1.07 trillion baht in January, continuing an upward trajectory since the fourth quarter of 2022.
A demographic breakdown of the debt crisis highlights a particularly vulnerable segment: young Thais. The NCB reports that 57% of individuals aged 25 to 29, typically entering the workforce, are already burdened with debt. One-third of retirees, facing lower incomes and higher expenses, are also struggling with debt, with over 10% holding non-performing loans.
In 2024, Thailand’s banking industry experienced its largest loan contraction in 15 years, with a 0.4% decline in total loans, attributed to cautious lending practices and weakened borrower repayment capacities. The NCB also reported a surge in bad debt among small businesses, amounting to 79.3 billion baht for the quarter, up 20.1% year-on-year and 5.2% from the previous quarter.
