Credit Cards, Personal Loans, Main Type of Debt Among Thais: Suan Dusit Survey

Credit cards are one of the types of debt Thais have to pay off as their daily lives have been badly affected by the Covid-19 pandemic. (Photo: Varuth Hirunyatheb)

Credit cards and personal loans are adding to the many types of debt Thais face as their daily lives have been badly affected by the Covid-19 pandemic, according to a survey by Suan Dusit Rajabhat University, or Suan Dusit Poll. .

The survey was conducted online from November 22 to 25 among 1,059 people across the country who were in debt as a result of Covid-19.

When asked what types of debt they had to pay, with each respondent allowed to choose more than one answer, 46.52% indicated credit cards and personal loans; 39.85% loans for real estate, including homes, condominiums and commercial buildings; 35.46% daily expenses; 30.79% loans for cars and motorcycles; and 15.73% of expenses for education and student loans.

Asked about the indebtedness of their household, their answers were:

  • 48.18% less than 500,000 baht;
  • 22.85% between 1,000,000 and 2,999,999 baht;
  • 15.26% above 3 million baht;
  • 13.71% between 500,000 and 999,999 baht.

When asked if they thought they could repay the debt, 71.11% said “yes”; 15.20% were uncertain; and 13.69% said “no”.

On their behavior after getting into debt, each respondent allowing themselves to give more than one answer, 60.23% said they had established a more prudent spending plan; 55.04% said they had to do more work to get extra income; 40.25% said they had researched information on debt management and reducing interest; 31.51% said they had turned to gambling; and, 25.36%, they were looking to borrow from those around them.

When asked how they would solve the debt problem, 80.88% said they would be more disciplined, thrifty and adjust their spending plans; 61.85% said the government should carry out debt restructuring to reduce interest on loans; 52.81% said the minimum wage and employment opportunities should be increased; 31.30% said people should be educated on debt management; and 23.31% said financial institutions should help debtors learn about financial planning.

When asked who they would turn to for help in solving the debt problem, 89.23% identified themselves; 46.33% families and close collaborators; 36.70% banks; 22.97% savings cooperatives; and 11.25% from pawn shops.

About Joan Ferguson

Check Also

NBK launches digital signature for personal loans and credit card applications

As part of providing customers with the most advanced digital solutions to enable them to …