More families in Southeast Asia sinking into debt

From Phnom Penh to Bangkok, a growing share of mainland Southeast Asia's economic story is no longer about exports, investment or factory growth, but about households borrowing simply to get by. What was once sold as financial inclusion is curdling into financial stress, analysts say, as years of easy credit, weak wage growth, and inadequate public services have left millions of households dangerously exposed. There are fears a household debt problem could become a broader financial one.

Cambodia is at the center of the crisis. The country's credit boom lifted the private debt-to-GDP ratio from 24.2% in 2010 to 134.5% in 2023, one of the region's sharpest expansions.  That boom is now colliding with a softer property sector, border disruptions with Thailand, and new US trade restrictions.

According to Cambodia's Credit Bureau, as of December 2025, the average outstanding personal loan per borrower was around $6,500 (€5,665). The garment-sector minimum wage is $208 per month.

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