MORE Filipino households are expected to experience difficulties in paying their bills and loans in full, based on the results of the fourth quarter 2024 consumer pulse study by Transunion Information Solutions Inc..
MORE Filipino households are expected to experience difficulties in paying their bills and loans in full, based on the results of the fourth quarter 2024 consumer pulse study by Transunion Information Solutions Inc.
. Based on the data, some 42 percent of respondents expect difficulty in fully paying their bills and loans that, according to Transunion, indicates a cautious financial outlook among households. The data also see that bills and loan payments are expected to increase alongside a rise in incomes, which indicates “further financial strain” for households in the coming months, according to the credit-reporting business. “These findings underscored the caution of Filipino consumers regarding financial resilience–possibly suggesting broader implications for household spending and debt management in the coming year,” read a statement Transunion issued last Tuesday. The data showed that four in every five Filipinos or 79 percent expect their incomes to increase next year; but 49 percent expect their bills and loan payments to follow suit. Transunion said the respondents who indicated that they expected their bill and loan payments to increase was higher in the fourth quarter this year compared to the 43 percent recorded last year. Weihan Sun, the firm’s principal of research and consulting for Asia Pacific, said that given “sustained financial pressure,” consumers are likely to adjust their spending and saving behavior. “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 was quoted in the statement as saying. “This might elevate default risks in certain debt categories which lenders should be cautious of. Additionally, these financial behaviors highlight the need for further credit education among a population where most consumers are relatively new to credit,” he added. Meanwhile, over three in every five Filipinos or 64 percent said access to credit is highly important to achieving their financial goals. This was higher than the 58 percent recorded last year. Transunion said this trend was led by Filipinos belonging to the “Gen Z” segment with 68 percent of them seeing the crucial role of credit access. However, Filipinos believe that access to credit remained limited as only 42 percent of consumers felt they were adequately served and a quarter of all respondents reported insufficient access.Despite this, Transunion said overall interest in new credit was strong with 53 percent planning applications for new credit or refinancing existing credit in the next year. Credit that they intend to secure are expected to be used largely for personal loans, buy now, pay later and credit cards next year. “These findings signal opportunities for lenders to meet the demand for accessible products especially among younger Filipinos eager to leverage credit for better financial flexibility,” Transunion said. Alongside holding more favorable perceptions about credit, the data showed Filipinos are monitoring their credit reports more frequently as well. More than seven in 10 or 71 percent now check their credit report at least once a month. This was slightly higher than the 67 percent posted last year. The data also showed 74 percent also viewed credit monitoring as highly important. “This shift towards proactive monitoring suggests consumers are becoming more mindful of their credit health and responsibilities,” according to Transunion. However, despite this positivity, the data showed 16 percent of consumers did not monitor their credit at all, which indicates that further education is needed in a rapidly growing credit market.Cai U. Ordinario writes macroeconomic and urban development stories. She has received awards for excellence in reporting on the macroeconomy and statistics. Ordinario is also a Jefferson Fellow of the East West Center in Honolulu, Hawaii. She completed her Masters degree in Communication at the University of the Philippines and Bachelor of Arts Major in Journalism from the University of Santo Tomas.
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