Thailand , Mar 21, 2025
Thailand is witnessing a worrying rise in credit card delinquency rates, reaching the highest levels in five years. According to data from the Bank of Thailand, the proportion of credit cardholders who have missed payments has surged, reflecting increasing financial strain among households.
Experts attribute this trend to multiple factors: persistent inflation eroding purchasing power, slow wage growth failing to keep pace with living costs, and uneven recovery in the tourism sector which many Thais depend on for income. Rising debt levels, particularly unsecured consumer debt, are now raising concerns about broader financial stability.
“Households are stretched thin, and credit card defaults are a clear symptom of economic stress,” said Somchai Jitprasert, a financial analyst based in Bangkok. “If this continues, it could impact banks’ loan portfolios and tighten credit conditions.”
The banking sector is closely monitoring the situation and some lenders are tightening credit issuance standards. The Bank of Thailand has urged financial institutions to enhance risk assessments and improve customer debt counseling services.
Meanwhile, policymakers are considering reforms to address household debt vulnerabilities, including improved financial literacy campaigns and regulations aimed at preventing excessive borrowing.
Consumer groups warn that without effective intervention, rising defaults could lead to increased social hardship, especially for low-income families reliant on credit for daily expenses.
However, the government’s stimulus measures and projected tourism rebound later in the year may help ease some pressure. Economists remain cautious but hopeful that structural reforms will stabilize debt levels in the medium term.
This credit card delinquency spike highlights the delicate balance Thailand must maintain between supporting economic recovery and managing household financial health amid ongoing inflationary pressures.
