Thai household debt comes from credit cards, car and motorbike loans

Pornchai said most of the debt came from student loans; loans from teacher cooperatives; personal loans and credit cards; auto and motorcycle loans; and informal debts as well as other general debts.

The Fiscal Policy Office (FPO) has set up a committee to address the issue of household debt.

FPO Chief Executive Pornchai Thiraveja said the committee was chaired by Energy Minister Supattanapong Punmeechaow.

The chief executive noted that most of the debt comes from student loans; loans from teacher cooperatives; personal loans and credit cards; auto and motorcycle loans; and informal debts as well as other general debts.

Relevant government units have already launched several programs to alleviate the problem, with a focus on helping debtors to generate more revenue. These campaigns include loans that can be used to start businesses or invest in agricultural innovation to help reduce costs and increase yields.

Pornchai said the Ministry of Finance is currently working to connect the state welfare database with related agencies such as the Ministries of Labour, Interior and Education and the Bank of Thailand. . The move should allow units to work together more effectively.

The government also promotes the importance of saving. The Ministry of Finance previously established the National Savings Fund and proposed to Cabinet a Bill for a National Pension Fund to provide capital to those in need.

To address the problem of chronic household debt, the administration will educate people of all ages and professions about financial literacy and money management. The government will also carefully review its policy to better prevent citizens from going into unnecessary debt. (NNT)