Despite having increased their income, nearly half of Filipinos have expressed concerns about not being able to pay their bills or loans in full, results of the Q2 2024 Consumer Pulse Study of global information and insights company TransUnion showed.
The study said 42 percent of its surveyed respondents reported an increase in income in the second quarter, an improvement from the same period of the previous year’s 41 percent.
However, despite the positive income outlook, overall sentiment about household finances shows signs of financial strain.
The report said 44 percent of respondents fear they won’t be able to pay their current bills and loans in full, a three percentage point increase from the same quarter last year.
The concern over financial stability was also reflected in a four percentage point drop of respondents feeling optimistic about their household finances in the next 12 months.
Pessimism and neutrality edged up, with biggest concerns affecting household finances identified as inflation, job security and interest rates.
These concerns, the study said, significantly influenced household spending.
While only slightly more than one fifth of the households surveyed increased discretionary spending such as dining out, travel and entertainment, almost half said they cut back in the second quarter of this year.
“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,” Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion, 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.
