Household debt is likely to hit a record high of 90% of GDP this year and could snowball into a major crisis if left unaddressed, says an expert. Families' debts may worsen due to sluggish economic conditions
and a lack of basic financial literacy, said Piyabutr Cholvijarn, president of the Kenan Institute Asia and director of the Thai Chamber of Commerce. If debts owed to loan sharks are taken into account,the the leverage ratio could already be above 100%, indicating that households are on the verge of collapse, he said.
Mr Piyabutr warned household indebtedness could cause a greater meltdown than the 1997 financial crisis and with more collateral damage.