Bangkok: Non-performing loans (NPLs) for houses and cars have now surpassed 500 billion baht, raising concerns about these assets becoming long-term financial burdens for many individuals.
According to Thai News Agency, data from the National Credit Bureau in 2025 indicates that out of a total of 1.22 trillion baht in NPLs, approximately 270 billion baht is attributed to auto loans and another 240 billion baht to home loans. This combined total of over 500 billion baht represents more than 40% of all NPLs in the system. The figures highlight a growing issue where houses and cars, traditionally seen as primary assets, are increasingly becoming liabilities due to inadequate financial planning.
Krungthai Card Public Company Limited (KTC) emphasizes the importance of comprehensive planning when considering the purchase of significant assets, noting that it involves more than just evaluating current purchasing power. KTC outlines three critical factors to consider in the decision-making process:
1. Total Cost Consideration: Beyond the initial purchase price, potential homeowners and car buyers should account for long-term expenses, including maintenance, repairs, interest, insurance, and depreciation. A thorough understanding of these ongoing costs is essential for financial stability.
2. Future Lifestyle Changes: Prospective buyers should evaluate whether their lifestyle, job, or living situation is likely to change in the next 3-5 years. Committing to long-term financial obligations could limit life flexibility, making readiness for change as important as readiness to buy.
3. Financial Resilience: After accounting for all expenses and debts, individuals should ensure enough remaining income for savings and unexpected events. Financial planners often recommend keeping total debt below 40% of income and maintaining 3-6 months' worth of emergency savings.
In today's economic environment, where ownership is not synonymous with success, it is crucial to assess whether an asset is facilitating personal growth or becoming a financial burden.
Information from: Krungthai Card Public Company Limited (KTC).