The Credit Bureau of Thailand has revealed that there has been an increase in the amount of bad debt due to borrowers facing higher costs of living, and is unable to pay debt.
The Credit Bureau Thailand General Manager Surapon Opasatian said that the company has been facing an increase in the amount of bad debt during the first quarter of this year.
Currently, the Credit Bureau has 19 million debtors and 59 million credit accounts. Most newly registered accounts were personal loans.
The type of accounts with the most debt are housing loans, followed by car loans, credit card loans, and personal loans.
For the first quarter of the year, credit loans have expanded by 13.4 percent.
Housing and construction loans have expanded by 16.3 percent, while car loans have expanded by 31.8 percent, of which 21.5 million are no-movement accounts and 5.4 million accounts are slow payment debts.
Surapon said higher oil prices have caused goods prices to rise, decreasing consumer purchasing power.
Higher interest loans could further increase bad debt as rates continue to increase.
Surapon said the three government banks could refinance credit cards by releasing credit loans; however, this will increase competition among credit card issuers.
He said the campaign would benefit all good debtors.