Fewer households report decline in their incomes in the fourth quarter but most still cut back on expenses.
TransUnion Consumer Pulse Study on the around the impact of new coronavirus disease 2019 (COVID-19) on personal finances, spending, and debt showed 59 percent reported a current decrease in income due to the pandemic compared to the previous quarter’s 64 percent.
However, 52 percent of respondents surveyed said they had cutback on discretionary spending in the last three months.
With the same proportion of respondents ascribing to the belief that access to credit and lending products is important to achieve financial goals, only 44 percent said they were planning to apply for credit in the next year.
About 47 percent of respondents said they had saved more in an emergency fund in the last three months.
With a belief vaccinations are a possible contributing factor to a growing optimistic economic outlook, close to half or 46 percent – decreased by 8 percentage points from the third quarter of respondents surveyed believe their household income will decrease in the future due to
COVID-19.
However, about half (46 percent) of all households expect to be unable to pay their current bills and loans in full. Among payment methods, the most popular ways used to pay current bills and loans are savings (42 percent) and partial payments (45 percent). Personal loans (37 percent), mortgages and home loans (33 percent), and credit cards (27 percent) emerged as the top bills and loans consumers who have these bills and loans say they will not be able to pay. – Irma Isip
