40% of Thai respondents with monthly income less than 15,000 baht have higher expenses than income. Rising household debt, particularly among Gen Y, due to easy credit, online shopping, and social pressure.Government efforts and financial education programs offer hope for a more financially stable future.
Income Disparity Among Thai Consumers
A recent consumer survey by SCB Economic Intelligence Center found that 40% of respondents with a monthly income of less than 15,000 baht had higher expenses than their income. Half of them estimated that it would take about three years for their income to match their expenses, while the other half believed they would never be able to find enough income in their lifetime.
Rising Household Debt and Tightened Lending Criteria
Thai consumers struggle to obtain new loans as financial institutions tighten lending criteria due to rising non-performing loans, with total household debt at 91% of GDP and bad debts increasing in housing, auto loans, and credit cards.
The Debt Trap Faced by Thai Gen Y
The struggles of Thai Gen Y are a common narrative in today’s economy. Many young adults are caught in a vicious cycle of debt, struggling to make ends meet and often forced to take on multiple jobs just to keep their heads above water. The latest data from the Bank of Thailand shows that outstanding consumer debt has ballooned to over 15 trillion baht, with the majority of that debt being held by Gen Y individuals.
Source : Young and in Debt: The Reality for Many Thai Millennials