Average Thai household debt reaches 160,000 baht


BANGKOK, 27 Nov 2013 The National Statistical Office (NSO) has revealed that the average household debt has risen significantly. 

According to a recent NSO survey on social and economic situation of Thai households during the first 6 months of this year, 54.4% of the households were indebted. The survey says that housing loans, daily purchase of commodity products and education expenses accounted for the majority of the household debts currently averaging at 159,492 baht.

Other household debts are related to agriculture and businesses. The survey also says that 91.6% of the debts are done within the formal banking system, 3.8% have deals with both legal and illegal creditors, and 4.6% rely on illegal money lending services. It also indicates that the average household debt made through traditional loan sources is 156,356 baht, which is 50 times higher than that made through illegal lenders.

However when looking at household expenses in each part of the country, the survey shows households in Bangkok and its vicinity have the highest average income of 44,129 baht, with 33,095 baht of average expense, or 75% of the income. The average household debt in these area is at 283,560 baht.

The northeastern region holds the highest expense-to-income ratio at 79.1%, causing households in the zone to have the least savings and the least debt clearing ability. Holding the least expense to income ratio is the households from in the northern region, which stands at 72%.