The survey revealed that 84 percent of households either experienced income growth (44 percent) or maintained their income (40 percent) in the past three months. However, 42 percent of respondents struggled to pay bills and loans in full, mirroring Q4 2023 figures.
Inflation (80 percent), job security (59 percent), and rising interest rates (41 percent) were cited as key concerns for the next six months.
Increasing reliance on credit
“In the face of sustained financial pressure, consumers in the Philippines have increasingly adjusted spending and saving behaviors,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. While many are shifting away from long-term savings, reliance on credit rose as almost one in five (17 percent) increased credit usage in Q4 during the holiday season.
“These behaviors reflect a tendency to prioritize immediate financial flexibility over long-term security as households attempt to bridge short-term financial needs in a high-cost environment,” Sun said, adding that this might elevate default risks in certain debt categories.
“These financial behaviors highlight the need for further credit education among a population where most consumers are relatively new to credit.”
Gen Zers drive demand
Credit is gaining traction, especially among younger generations. About 64 percent of Filipinos view access to credit as essential for achieving financial goals, up from 58 percent last year.
However, only 42 percent feel adequately served, and one in four reports insufficient access. Gen Z leads in this demand, with 68 percent valuing credit access and 53 percent planning to apply for new credit or refinancing in the next year.
Data breaches, fraud attempts
Cybersecurity remains a critical issue, with 35 percent of respondents experiencing data breaches in Q4 2024. While 55 percent of Filipinos reported fraud attempts, only 45 percent knew how to respond effectively.
“Empowering consumers with education and accessible security tools is vital to counter evolving threats,” added Sun.
TransUnion’s survey highlights the growing need for financial education, accessible credit, and robust cybersecurity measures to help Filipinos navigate financial challenges.
TransUnion’s Consumer Pulse Study surveyed 938 adult Filipino consumers from Sept. 25 to Oct. 17, 2024. This survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft.--Ed: CSN
