Filipinos stay financially resilient as credit use becomes more selective

Filipino households are ending 2025 on stable financial ground, showing a mix of optimism and caution amid persistent cost-of-living pressures, according to TransUnion’s Q4 2025 Consumer Pulse Study released on Wednesday.

The study found that income stability continues to anchor household confidence, with 42% of consumers reporting higher income in the past three months and 41% seeing no change.

Three in four Filipinos (75%) expect their income to rise over the next 12 months, while eight in ten (80%) are optimistic about their household finances moving into 2026.

The report noted that despite tighter budgets, Filipinos are maintaining control of their finances and adjusting their behavior to match economic realities.

cautious Spending

Inflation for everyday goods remains the top concern for 81% of consumers, followed by job stability for 57% and interest rates for 45%.

These worries have remained unchanged since 2024, suggesting long-term financial vigilance rather than reactions to short-term disruptions.

Nearly half of households (47%) have cut back on discretionary spending such as dining out and travel.

One in four (25%) reduced digital services, while another 25% dropped subscriptions or memberships entirely.

Half of Filipinos (50%) also expect to spend less this holiday season compared to last year, reflecting a shift toward more deliberate, value-driven consumption.

Looking ahead to next quarter, 47% of consumers expect bills and loan payments to rise, 42% foresee higher medical costs, and 36% anticipate increased retail spending.

Only 27% plan to spend more on big-ticket items like appliances or vehicles, reinforcing the trend toward selective budgeting.

“The trend mirrors the wider economy — still expanding, but at a calmer pace after two years of rebound,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.

“Consumers are managing spending more pragmatically, especially with Filipinos looking to spend less this holiday season compared to last year. It’s a sign of practical optimism. People are still participating in the economy but are doing so on their own terms and with greater financial intent.”

Borrowing steady but…

The study shows that 58% of Filipinos still consider access to credit very important for achieving their financial goals.

However, this reflects a slight decrease from last year, suggesting households may be relying less on borrowing for immediate needs.

Confidence in credit access remains stable, with 42% saying they have sufficient access, especially among Gen X (47%) and Millennials (46%).

Intent to apply for or refinance credit fell to 47% from 53% last year, indicating more selective borrowing behavior.

Most planned credit applications are for smaller, flexible products, including personal loans (49%) and buy now, pay later (BNPL) arrangements (35%).

Abandoned applications also fell to 56% from 64%, although high borrowing costs (31%), potential rejection due to income or employment status (28%), and lengthy processing times (24%) remain key friction points.

“We’re seeing a real shift in how Filipinos view credit. It’s moving from being a necessity to becoming a choice,” Sun said.

“Credit remains available, but consumers are weighing their options more carefully, guided by how secure they feel about their jobs and savings. It’s a more thoughtful use of credit as a tool, not a crutch. As this mindset continues to evolve, it’s equally important for consumers to stay informed by regularly monitoring their credit health.”

Expanded financial education

TransUnion recently partnered with the Bangko Sentral ng Pilipinas (BSP) to launch an interactive credit education module on the BSP E-Learning Academy (BELA), aimed at helping Filipinos better understand and manage their credit scores.

The modules will be available next year and will offer practical guidance on building and maintaining healthy credit profiles.

This marks the first collaboration between BSP and a credit reference agency on financial education initiatives through BELA, highlighting a shared commitment to financial inclusion.

“As more Filipinos take a more intentional approach to their finances, ensuring they have the right guidance and support will be key to helping them build long-term financial resilience,” Sun said.

TransUnion surveyed 961 Filipino adults from September 25 to October 15, 2025, representing Gen Z (18–28 years old), Millennials (29–44), Gen X (45–60), and Baby Boomers (61 and above).

The quarterly study tracks consumer attitudes and behaviors related to income, debt, and identity theft, with insights used to inform financial policies, products, and education programs across sectors.