Over half of Thais may fall into debt due to overspending - NESDC

More than 50% of working Thai people have savings amounting to less than six months of their salaries and there is a tendency to easily fall into a cycle of debt, due to their habit of overspending, according to Danucha Pichayanan, secretary-general of the National Economic and Social Development Council (NESDC), today.

Citing research by Mahidol University, undertaken last year, he said that Thai people have a propensity for lavish spending, which can result in being overburdened with debt, noting that one in three Thais prefer to buy luxury items and premium services, such as expensive concert tickets and beauty-enhancement services, to boost their image and to gain recognition, which places them at risk for becoming overburdened by debt.

Thai men, he said, are more concerned with their social status than women and they tend to be indulgent in buying brand name products and electronic gadgets, while Thai women tend to spend lavishly on food and drinks, cosmetics, perfume, skin care and fashionable clothing.

The overall household debt of Thai people last year was estimated at 16.42 trillion baht, representing an increase of 0.2% year-on-year, although the rate of increase in household debt has been slowing for the past six quarters, largely thanks to the tightening of lending by commercial banks.

Mahidol University’s research also shows that, during the first quarter of this year, alcohol consumption by Thai people increased by 2% and cigarette smoking dropped 0.8%, compared to the previous quarter. Beer is the most popular beverage among Thailand’s roughly 20.3 million drinkers.

The five provinces with the highest consumption of alcohol are Buri Ram, Ratchaburi, Tak, Ang Thong and Uttaradit, with an average of 12% of the population drinking 3-4 days a week.

9.77 million Thais were smoking last year and the youngest smokers were aged 15, with a tendency to start smoking at a younger age.