A recent survey by TransUnion, a global financial markets researcher, reveals a mixed financial outlook among Filipinos as they navigate economic uncertainties. While 79 percent of respondents expressed optimism about income growth in 2025, nearly half (49 percent) admitted concerns about meeting loan and bill payments.

According to the survey, conducted during the fourth quarter of 2023, 84 percent of households reported receiving either higher or stable incomes in the previous quarter. However, financial challenges persist, with 42 percent of respondents acknowledging difficulty in fully paying bills and loans. This figure is slightly lower than the 43 percent who reported similar struggles earlier in the year.

Inflation remains a top concern for 80 percent of Filipinos, while 59 percent are worried about job security over the next six months. Additionally, 41 percent of respondents fear rising interest rates could exacerbate financial strain.

Spending trends and credit usage

The survey highlighted a seasonal increase in consumer spending during the fourth quarter, driven by demand for holiday-related goods. TransUnion noted a shift in financial behavior, with more households relying on credit to bridge short-term needs. Nearly 17 percent of respondents reported increasing their credit usage during the holiday season.

Weihan Sun, TransUnion’s principal of research and consulting for Asia Pacific, emphasized the need for caution among lenders. “These behaviors reflect a tendency to prioritize immediate financial flexibility over long-term security as households attempt to manage high costs,” Sun explained. “This could elevate default risks in certain debt categories, underscoring the importance of careful monitoring by lenders.”

The survey also shed light on the financial attitudes of Gen Z Filipinos. A majority (68 percent) view credit as a vital financial tool, yet 34 percent reported limited access to credit. Despite these barriers, 53 percent plan to acquire new credit in 2025, primarily for personal needs.

Lenders, policymakers’ implications

TransUnion’s findings suggest a delicate balancing act for lenders and policymakers as they navigate a landscape marked by cautious optimism and financial vulnerability.

The data underscores the importance of tailored financial strategies to support both consumer resilience and sustainable lending practices.

As inflation and job security remain pressing concerns, understanding and addressing the evolving financial behaviors of Filipino households will be critical in fostering economic stability in the coming year.

In the fourth quarter, Filipino consumers increased their credit monitoring frequency; daily checks rose to 18 percent from 13 percent last year and 74 percent viewed credit monitoring as highly important.

Despite this, 16 percent still did not monitor their credit at all, indicating an area where further education could enhance financial engagement.

This shift toward proactive monitoring suggests consumers are becoming more mindful of their credit health.

Digital adoption was also evident as 36 percent conducted 26 percent–50 percent of transactions online, an increase from 33 percent last year, and those mainly transacting online (51 percent–75 percent) rose to 23 percent. The trend highlights a shift toward digital finance, allowing credit providers to use online tools to support more frequent credit engagement.

Meanwhile, 54 percent of consumers felt incorporating alternative data, such as rental and subscription payments, would improve their credit scores.