Cash advances through Kasikornbank's credit cards for the first three weeks of this year rose while spending fell, indicating its cardholders are in dire need of cash to pay for debts and staples.
Cash advances withdrawn from credit cards at Thailand's fourth-largest commercial lender by assets from Jan 1-22 rose to 1.59 billion baht, up from 1.38 billion over the same period a year before, said Chatchai Payuhanaveechai, executive vice-president.
And spending through the bank's plastic cards declined to 11.8 billion baht from 14 billion.
Mr Chatchai said credit card spending on travel and ornaments has fallen, with spending on travel dipping 9% this year compared to 52% growth over the same period a year ago.
Bank card spending at hotels recorded flat growth compared with a 21% expansion last year. Yet the bank still aims for 30% growth in credit card spending to 310 billion baht this year.
Pittaya Vorapanyasakul, Krungthai Card's executive vice-president for credit card business, said cash withdrawals from its cards are unchanged, though card spending has slowed due mainly to political uncertainties. Cash advances represent 15% of its total spending.
"The political turmoil has weakened domestic purchasing power and weighed on the spending mood. But KTC set an aggressive spending growth target for this year, supported by promotional campaigns and higher prices for both goods and services," she said.
KTC aims for spending growth via credit cards of 10-15% this year compared with sluggish growth of 4-5% the previous year.
Araya Phupanich, Siam Commercial Bank's first executive vice-president, said a number of its cardholders have refinanced to personal loans to relieve their monthly debt burden.
Personal loan borrowers, under central bank regulations, are required to pay at least 5% of the total balance, while credit card loans require a minimum payment at 10%. The maturity on personal loans can be extended to of five years, lowering monthly payments but with a higher interest rate.