As temperatures climb across Thailand, households are feeling more than just the heat. This year’s hot season has brought a sharp rise in living costs, particularly fuel prices, tightening budgets and amplifying financial strain.
In this environment, effective financial management has become essential to easing the burden.
Demand for personal loans
Data from the KKP Better app, a revamped financial platform by Kiatnakin Phatra Bank (KKP), shows a significant increase in personal loan demand since the beginning of the year, reflecting growing liquidity pressures among consumers.
The bank describes this period as a “financial summer” — a time when four major expense burdens converge: taxes, higher electricity bills during the hot season, festival-related spending, and preparations for children’s tuition fees. To cope, KKP is encouraging a more strategic approach to debt management to help reduce long-term interest costs.
Based on historical data, KKP found household liquidity typically comes under pressure between April and May, as a “storm of expenses” hits simultaneously across several fronts.
A key burden is personal income tax. Data from the Digital Government Development Agency indicates personal income tax collection tallied 432 billion baht in 2025, up 29% from four years earlier. During this period, salaried workers are generally expected to set aside 5,000-10,000 baht in cash.
Electricity costs also rise sharply during the hot season. For every 1°C increase in temperature, air conditioners consume about 3% more electricity, pushing household power bills 10-30% higher in April and May compared with other months.
Spending linked to Songkran adds another layer of pressure. Although short-lived, outlays during Songkran 2025 rose sharply to 106 billion baht, up from 88 billion the previous year, driven by higher travel and celebration expenses despite economic challenges.
Education costs remain the most significant burden, particularly for families with children in private or international schools, where annual tuition can range from tens of thousands to hundreds of thousands of baht.
KKP Better app data also highlights a shift in parental behaviour. QR code payments for education totalled 88 million baht between 2020 and 2025, with 46 million baht recorded in 2025 alone — an average of 25,000 baht per person.
Notably, the use of revolving credit facilities now begins earlier in the year, from February to March, ahead of the usual tuition payment cycle. This reflects additional hidden costs such as admission fees and tutoring for entrance exams to top schools.
“This shows parents prioritise maintaining their children’s educational opportunities above all else, even during the most financially constrained period of the year,” KKP noted.
Need for financial planning
For some households, careful planning has helped to mitigate the impact of rising costs.
Chutima Apichaisuksakul, an employee at a private company, said her finances have not been significantly affected by higher oil prices thanks to disciplined financial management.
However, she is reconsidering long-term decisions, including switching from an internal combustion engine (ICE) vehicle to an electric vehicle to reduce fuel expenses.
Mrs Chutima originally planned to make the transition within 10 years, after recently purchasing a new ICE car. Yet if diesel prices continue to rise under the government’s managed-float pricing mechanism, she may bring that timeline forward to within five years.
Her family has already adjusted its lifestyle to cope with higher costs. She relies more on public transport, while her husband works from home in line with company policies.
“With financial planning and lifestyle adjustments aligned with changing circumstances, our family has not been heavily affected by rising oil prices,” said Mrs Chutima.
She also set up separate savings accounts for each of her two children, aged four and six, to better manage expenses such as tuition and health insurance. These costs are planned on an annual basis to ensure effective budgeting.
Despite this discipline, Mrs Chutima said she remains concerned about income stability rather than expenses, citing economic uncertainty and the growing impact of artificial intelligence. Her company suspended bonus payments last year for the first time in many years, while both her workplace and her husband’s have begun implementing workforce reduction measures.
Harder to stay afloat
For others, the impact has been more immediate.
Nitipon Makmee, 32, left his full-time job earlier this year to become a freelancer while working as a driver for Grab. Before fuel prices rose, he was able to earn a steady income and manage his expenses comfortably.
However, higher fuel costs have since eroded his earnings.
“I have to work harder as expenses increase and my income declines,” said Mr Nitipon.
“I try to accept as many trips as possible to raise my earnings and qualify for special bonuses from Grab’s system. Although this increases fuel costs, it still results in higher overall income, so it’s worth it.”
Digital alternative
In response to rising financial pressure, digital tools are emerging as an alternative source of support.
The KKP Better app introduced a “purpose-based pricing” model under its Better Loan product, aimed at expanding household access to financing at more reasonable rates.
“Digital lending services can help prevent households from turning to informal loans with excessively high interest rates as demand rises for personal loans,” said Ramestr Sasirajpornchai, team head of digital and innovation management at KKP.
Better Loan applies interest rates based on the purpose of spending, with customers automatically receiving lower rates when funds are used for essential, quality-of-life expenses.
Loans used via QR payments for categories such as education, healthcare and insurance start at an interest rate of 7.99% per year, while those for utilities, health and beauty, fuel and tyres, and household goods begin at 10.49%.
Effective interest rates range from 7.99% to 25% per year, depending on the bank’s terms and conditions.
The KKP Better app is designed as a comprehensive financial platform, offering transactions and financial management, including savings, investment, insurance and financial planning.