Filipinos Optimistic on Income but Wary of Debt in 2025

Filipino consumers are stepping into the second half of 2025 with guarded optimism, balancing rising incomes with persistent economic pressures and credit access challenges, according to TransUnion’s Q2 2025 Consumer Pulse Study.

While 73% expect their income to rise in the next year, 44% said they might still struggle to fully pay their bills or loans.

More than two in five Filipinos (41%) reported higher income over the past three months, while 17% saw a decline, slightly better than the same period last year.

Inflation remains the top concern for 83% of respondents, followed by job security (59%) and interest rates (40%).

Nearly half (47%) said they have reduced discretionary spending, while 24% cut back on digital services to manage expenses.

At the same time, 45% increased their emergency savings and 33% accelerated debt repayments, consistent with behavior from Q2 2024.

“Filipino households are approaching their finances with cautious optimism,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.

“This mindset is reflected in their actions—cutting back on non-essential spending, saving consistently, and staying on top of debt,” he added.

Access to credit is increasingly viewed as essential, with 58% considering it critical to reaching financial goals.

Confidence in credit access rose to 44% from 38% a year earlier, with Millennials the most confident at 47%.

Baby Boomers showed notable improvement, rising from 28% to 42% in perceived access to credit.

Borrowing intent remains high among Gen Z (58%) and Millennials (52%), with personal loans, buy now-pay later options, and new credit cards most in demand.

Yet 57% of potential borrowers abandoned credit applications due to fears of rejection or high borrowing costs.

“Lenders have an opportunity to bridge this gap by offering more inclusive solutions—ones that not only meet practical needs but also build trust,” said Sun.

Despite the growing use of credit, importance placed on credit monitoring declined from 72% to 68%—the lowest since Q2 2024.

Millennials led in valuing credit monitoring at 73%, followed by Gen Z (72%) and Baby Boomers (62%).

Gen X reported the lowest awareness at 60%, suggesting a need for targeted education across age groups.

“In times of economic uncertainty, maintaining good credit health is more important than ever,” Sun noted.

He urged the financial industry to provide better education and tools to help Filipinos take control of their credit and boost long-term financial resilience.

TransUnion’s Consumer Pulse Study surveyed 943 adult Filipinos from May 5 to 23, 2025. This quarterly survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft.

Respondents ranged from Gen Z, 18-28 years old; Millennials, 29-44 years old; Gen X, 45-60 years old; and Baby Boomers, age 61 and above.

By capturing insights across generations and financial situations, the study helps promote greater financial inclusion by informing policies, products, and education efforts that meet the evolving needs of all consumers.

For more information, please view the full report of the TransUnion Q2 2025 Consumer Pulse Study.