Determinants of Household Loan’s formal Debt in Chiang Rai Province

Abstract

With the condition of the people in the household sector more debt has been incurred. The household sector has a difficult economic situation. Having more debt than savings. The researcher therefore studied Determinants of Household Loan’s formal Debt in Chiang Rai Province. The objective of this research was to study the relationship between financial literacy, Household Characteristics, and economic factors during the COVID 19 pandemic with household load formal Debt in Chiang Rai province. The samples for this research were 389 samples aged 20 years and over (both male and female) in Chiang Rai. The data were analyzed by descriptive statistics such as Percentage values, mean values, and standard deviations. The statistics used to analyze the data were logistic regression. The results of this study were The formal loan in household in economic factors during the COVID-19 pandemic were 203 samples, with a credit limit not over 100,000 baht. The majority of respondents with a high level of financial knowledge, medium level of financial behavior, and medium level of financial attitude were female traders aged 20 – 30 years old with a bachelor’s degree. The average family size is 3 –5 people. The average total income per household is between 10,000 – 30,000 baht. The average total expenditure per household is between 10,000 – 30,000 baht Base on the hypothesis, it was found that there was (1) financial knowledge (2) financial behavior and (3) financial attitude. There is a relationship with Household Loan formal Debt in Chiang Rai. The demographic factors there were (1) Sex (2) occupation (3) educational level (4) average family size (5) average monthly household expenditure. There are relationships with Household Loan formal Debt in Chiang Rai. Finally, economic factors during the COVID 19 pandemic. There is a relationship with Household Loan formal Debt in Chiang Rai. Creating knowledge and understanding about financial skills for the household sector and financial planning, both short-term and long-term. It will help households make appropriate decisions about using financial services. Able to adapt in time to various situations that affects the economic recession. This is to prevent excessive debt in the future and to keep the financial status of the household stable.