Household Debt of Grassroots Thai Population

Abstract

This research study examines household debt among Thailand's grassroots population, focusing on its causes, socio-economic impacts, and potential management or reform strategies. The research employs a mixed-methods approach, integrating desk research and in-depth interviews with 24 purposively selected participants, including low-income earners, daily wage laborers, small business owners, farmers, young adults, and financial experts. Thematic analysis was used to interpret qualitative data, identifying recurring patterns and key themes related to debt experiences and coping strategies. The findings reveal that key drivers of debt include insufficient income, rising living costs, limited access to affordable credit, and low financial literacy. Debt burdens contribute to significant financial strain, mental health challenges, and constrained economic mobility, perpetuating poverty cycles. Solutions identified include debt restructuring, community-based lending models, and financial literacy programs. Policy implications emphasize the need for systemic reforms to enhance financial inclusion, regulate informal lending, and align credit systems with the needs of grassroots populations. While the study offers in-depth insights, limitations include the relatively small sample size and the focus on specific local contexts, which may limit the generalizability of findings. Nonetheless, the research provides actionable insights for policymakers and financial institutions aiming to address Thailand’s household debt crisis effectively.