Looking Backward and Moving Forward: Informal Debt in Thailand and Solutions

Abstract

This academic article presents the situation and solutions to the issue of informal debt in Thailand over the past 10 years (2014–2024), as well as the future direction of informal debt. The study uses secondary data through documentary research, examining principles, concepts, theories, related research, academic papers, journals, books, research reports, and information obtained through online searches. It also considers policies, regulations, public documents, and statistics related to informal debt in Thailand. The data collected over the past decade (2014–2024) reveals that informal debt problems arise from economic issues and inappropriate spending behaviors, leading individuals to rely on informal lending sources. Informal borrowing takes various forms, and a significant cause of the problem is the low income of citizens who cannot access formal financial services. Additionally, a lack of knowledge about interest calculations and wasteful spending behaviors contributes to the issue. As a result, informal debt negatively impacts individuals, society, and the economy. Moreover, informal debt has been linked to rising crime rates and poses an obstacle to the advancement of the national economy. Therefore, addressing the informal debt problem requires comprehensive cooperation from various sectors, including changing the public’s behavior and attitudes to prevent future occurrences. Solutions include increasing access to formal financial services, promoting financial literacy, and enforcing laws to address the issue more strictly. Implementing these recommendations will help effectively reduce informal debt and improve financial stability for individuals, as well as the overall stability of Thailand’s economy and society.