THAI HOUSEHOLD DEBTS AND THE SUSTAINABLE SOLUTIONS

Abstract

Thailand's household debts are likely to continue to rise in contrast to people’s lower incomes and poorer debt servicing capability. If the situation keeps prevailing, it might eventually affect the economy at the macro-level. As a result, solving the household debt problem is an important issue that should not be overlooked. Nowadays, Thai people are found out to have household debts at a sooner time with longer debt periods and bigger amounts of loans. Not with standing the government has issued many measures to ease household debt problems (such as solving funding source problems and increasing individual’s access to funding sources), the effectiveness of those measures are yet low under a circumstance that the households are lacking financial discipline. It is therefore necessary to acknowledge financial literacy to people, especially in the area of household debt management. This academic article to disseminate knowledge and understanding of; the current situation of household debts in Thailand, the debt articulating factors, and the sustainable solutions to household debts. Authors scrutinize information derived from document analysis and the reviewing of related research.  Authors also exemplify solutions for delayed debt settlements, which is a preventive measure against bad debt evolvement. Hope fully, this article will serve as a resource for households in preventing the debt crisis, which is a household’s immunity against future debt cycles.