While 73 percent of respondents said they expect their income to increase in the next 12 months, concerns about inflation (83 percent ), job security (59 percent), and interest rates (40 percent) continue to cloud their financial outlook.
The study underscores how Filipino households are carefully adapting their spending, borrowing, and saving strategies to navigate the current economic landscape.
Income trends offer a glimmer of hope
The Q2 survey, which polled 943 Filipino adults across different generations, found that 41 percent of consumers experienced an income increase in the last three months—a modest yet encouraging improvement from the same period in 2024. Meanwhile, 17 percent reported a decline, slightly better than the 19 percent drop noted last year.
Despite these gains, nearly half of all respondents (44 percent) expressed concern that they may not be able to fully repay at least one of their current bills or loans—highlighting the tension between hope for future income and the financial strain of current obligations.
Spending smarter: Budget cuts and financial planning
In response to economic uncertainty, Filipino consumers are cutting back on discretionary expenses (47 percent) and reducing digital service subscriptions (24 percent). But beyond trimming non-essentials, many are also making positive strides toward long-term financial health:
45 percent increased their emergency savings
33 percent made accelerated debt payments
“Filipino households are approaching their finances with cautious optimism,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “They are not just adapting to current conditions, but also making thoughtful decisions to secure long-term financial well-being.”
Credit access seen as a key financial tool
Access to credit remains crucial for Filipino consumers. Some 58 percent consider it essential for achieving financial goals, with growing confidence in credit availability— 44 percent said they had sufficient access, up from 38 percent a year ago.
Generationally, Millennials are the most confident (47 percent), while Baby Boomers saw the greatest increase in confidence, rising from 28 percent to 42 percent.
Intent to borrow also remains strong:
58 percent of Gen Z and 52 percent of Millennials plan to apply for or refinance credit in the next 12 months.
Top credit products include personal loans (45 percent), buy now, pay later services (38 percent), and new credit cards (31 percent).
However, 57 percent of consumers abandoned a credit application due to fear of rejection (30 percent) or high borrowing costs (29 percent).
“Lenders have an opportunity to bridge this gap by offering more inclusive solutions,” said Sun. “This means building trust and addressing emotional as well as financial barriers.”
Credit monitoring declines despite high credit usage
Interestingly, even as demand for credit rises, the perceived importance of credit monitoring has declined. The percentage of consumers who believe it is important fell from 72 percent in 2024 to 68 percent in Q2 2025 — the lowest in the past five quarters.
Generational awareness varies:
Millennials: 73 percent
Gen Z: 72 percent
Baby Boomers: 62 percent
Gen X: 60 percent
“A solid credit profile provides access to critical financial opportunities,” Sun emphasized. “Investing in tools and education to improve credit literacy is essential for promoting long-term financial resilience.”
Data for inclusion and financial resilience
The survey, conducted from May 5 to 23, 2025, reflects the behaviors of consumers from Gen Z to Baby Boomers. TransUnion aims to use this data to promote financial inclusion, guide responsible lending, and inform consumer-focused policies in the Philippines. —Ed: Corrie S. Narisma
