Six in four Filipinos reported their incomes decreased in the third quarter of the year when the strict lockdown was implemented and half are concerned about their ability to pay their bills or loans.
A TransUnion Consumer Pulse study showed 54 percent of consumers believed their household income will be negatively impacted by the pandemic in the future such that they may seek some special arrangements to fulfill their obligations.
About half of all surveyed consumers (48 percent) were concerned about paying their bills or loans in full. The top bills and loans consumers said they won’t be able to pay among those with these bills/loans were auto lease (36 percent), personal loan (35 percent), and auto loan (35 percent).
Meanwhile, 21 percent of consumers said they received financial accommodation, such as a deferral, forbearance, payment holiday or eviction prevention in the past year. Mortgage (20 percent), private student loan (19 percent), auto loan (16 percent), and personal loan (16 percent) were the top bills and loans enrolled in financial accommodation in the past year among consumers with that bill/loan.
To pay current bills or loans, 47 percent said they will use money from savings and 40 percent will borrow money from friends/family, while 41 percent said they will pay a partial amount. Over one in 20 consumers (6 percent) reported they don’t know how they are going to pay.
The survey has uncovered that consumer awareness and appetite for alternative lending methods is broadening, specifically, Buy Now Pay Later (BNPL) facilities have high awareness among consumers, with nearly half (45 percent) of all respondents also reported they have used BNPL services in the past 12 months.
