FINANCIAL stability concerns rose among Filipino households, with most fearing they won’t be able to pay their bills and loans in full, a TransUnion survey showed.
The Q2 2024 Consumer Pulse Study by TransUnion revealed that despite increased household income, 44 percent of respondents feared they would not be able to fully pay their bills and loans, an increase from the same period last year.
Financial strain was evident in overall household sentiment, with 80 percent expressing optimism about the next 12 months — a decline from the previous year.
Meanwhile, pessimism (8.0 percent) and neutrality (12.0 percent) also increased, driven by concerns over inflation, job security and interest rates.
“Although more Filipinos enjoyed increased household incomes in Q2 2024 and expect this trend to persist in the next 12 months, the adjustments they made to household budgets suggest a cautious approach to financial management,” TransUnion Principal of Research and Consulting for Asia Pacific Weihan Sun said.
“This seemingly contradicting sentiment suggests a vigilant yet hopeful outlook as Filipinos continue to acclimate to economic challenges, navigating between necessary expenditures and financial prudence,” Sun added.
Moreover, TransUnion revealed that financial pressures had a notable impact on household spending behavior in the second quarter of this year.
Nearly half or 47 percent of households cut back on spending for dining out, travel and entertainment, while 22 percent increased such spending.
“These adjustments reflected a cautious approach to managing household budgets amid economic uncertainties, highlighting the delicate balance households strive to maintain between necessary expenditures and discretionary spending,” TransUnion said.
Looking ahead, households expect changes in spending over the next three months.
Fifty-two percent anticipate higher bills and loans, while 39 percent plan to increase retail shopping.
Discretionary personal spending is expected to rise to 32 percent from 31 percent, and digital services spending to 32 percent from 28 percent.
Forty-three percent, meanwhile, expect higher medical care costs, while spending on large purchases is projected at 29 percent, slightly down from 30 percent in the previous quarter.
“These projections indicate a cautious but hopeful outlook as households navigate the balance between necessary expenditures and financial prudence,” TransUnion said.
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