Bangkok:Although statistics suggest an improvement in Thai household debt, many citizens continue to struggle with financial burdens, questioning whether the reported figures truly reflect reality.

According to Thai News Agency, Mr. Viroj Tangcharoen, President of the Thai Financial Planning Association, highlighted that despite a slight decrease in the household debt-to-GDP ratio, the situation remains precarious. This decline is attributed not to increased incomes but to more stringent lending standards by banks and a shift of some debt to the informal sector. A critical concern is the reliance on savings for daily expenses and the use of credit cards for liquidity, which signals the onset of a debt trap.

The "Sandwich Generation," responsible for both children and parents, is particularly at risk in the current economic climate. Mr. Viroj advises against merely tightening budgets, which is challenging amid high living costs. Instead, he advocates for skill enhancement to generate new income streams and systematic debt management. Prioritizing the clearance of high-interest debt and gradually building an emergency fund are essential steps. Without an emergency fund, individuals may be forced into borrowing under unfavorable conditions.

In a time where income growth lags behind living costs, financial planning becomes a necessity for survival rather than a luxury. Self-reliance, reducing unnecessary expenses, and avoiding new debt traps are crucial strategies for navigating these financially challenging times.