TransUnion: Filipinos upbeat on income growth but anxious about loan payments

While a majority of Filipinos or 79 percent are optimistic that their income will grow next year, 49 percent say that paying loans and bills might become challenging, a survey by TransUnion, a global financial markets researcher, revealed.

Based on its survey for the fourth quarter, TransUnion on Tuesday reported that 84 percent of households received either higher or stable incomes in the previous quarter.

However, 42 percent said they experienced some difficulty in paying their bills and loans in full. TransUnion said only slightly more households or 43 percent share in the fourth quarter of 2023 shared they faced the same financial challenge.

The new survey results show that most Filipinos or 80 percent are worried about inflation, while 59 percent are concerned about job security in the next six months. A smaller group or 41 percent fear interest rates might increase.

Cautious lending

As consumers try to stretch their finances, TransUnion said financial data show that higher spending on consumer goods is usually sought during the fourth quarter.

"While more are shifting away from long-term savings, reliance on credit rose as almost one in five or 17 percent increased credit usage in fourth during the holiday season," TransUnion principal of research and consulting for Asia Pacific Weihan Sun said.