According to the latest survey by the University of the Thai Chamber of Commerce (UTCC) based on 1,194 respondents whose income is lower than 15,000 baht per month, 96% of them were in debt.
The survey estimated average debt per household at 137,988 baht, the highest level in 10 years, up by almost 5% from 2017.
Default rate up to 85%
Some 85.4% of respondents have defaulted on debt repayments in the past 12 months, mostly because of lower income, higher expenses, rising product prices, and a higher debt burden and interest rates.
According to an infographic published by the Bangkok Post, up to 34% of the current household debt of poor families is still managed by the informal sector (known as loan sharks) with interest rates as high as 20% per month.
Laborers with wages under 15,000 baht a month are showing the highest rate of debt in 10 years according to a survey conducted by The University of the Thai Chamber of Commerce’s Economic and Business Forecasting Center.
Average debt of 138,000 baht up 5%
Of the 1,194 people questioned, as many as 96 percent said they have debts, the highest figure in 10 years. The average household debt for respondents was gauged at 137,988 baht, up 4.9 percent on-year with most having to make a monthly payment on average of 5,326 baht.
Finance Ministry cuts economic growth outlook to 2.8%
The Ministry of Finance has now cut the country’s economic growth outlook to 2.8%, from the previous 3%.
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