As inflation bites : Nearly half of Pinoys expect difficulties paying bills – survey

MANILA, Philippines —  Nearly half of Filipino consumers expect to be unable to fully pay at least one bill or loan in the coming months as inflation continues to strain household budgets, even as most remain optimistic that their finances will improve, according to TransUnion Philippines.

The credit information company’s second quarter Consumer Pulse Study showed that 45 percent of consumers expect to miss full payment on at least one of their current bills or loans, slightly higher than 44 percent a year ago.

This came even as 74 percent of Filipino consumers said they were optimistic about their household finances over the next 12 months, although this was lower than the 77 percent in the same period last year.

“Filipino households are entering the second half optimistic but clear-eyed. They expect their incomes to stay resilient, which keeps confidence broadly intact, yet they feel the weight of inflation on everyday costs,” said Weihan Sun, senior director of research and consulting for Asia-Pacific at TransUnion.

Inflation remained the biggest concern among Filipino consumers, with 84 percent citing it among their top three worries affecting household finances in the next six months. This was up from 83 percent a year ago.

Other major concerns were job security at 54 percent, followed by recession and interest rates at 44 percent each.

As prices stayed elevated, more households tightened their budgets. The survey showed 55 percent of consumers reduced discretionary spending such as dining out, travel and entertainment in the past three months, up from 47 percent in the second quarter of 2025.

Consumers also became more selective with recurring expenses, with 27 percent canceling subscriptions or memberships, while 25 percent cut back on digital services such as wireless, cable television and internet.

At the same time, more Filipinos tried to strengthen their financial buffers. About 49 percent added to their emergency savings, up from 45 percent a year ago, while only eight percent tapped retirement savings, down from 12 percent.

“Filipino households are not simply responding to pressure, but prioritizing what matters and being deliberate with every peso, using credit with intention to smooth day-to-day cash flow and bridge spending gaps,” Sun said.

Credit demand remained strong, with 48 percent of consumers planning to apply for new credit or refinance existing loans in the next 12 months. This was lower than 51 percent a year ago but still reflected sustained appetite for borrowing.

Despite the continued interest in credit, TransUnion said many consumers are still facing barriers. Three in five, or 60 percent, of those who considered applying for credit abandoned their plans, up from 57 percent a year ago.

The most common reason was cost, cited by 35 percent of respondents, followed by finding another funding source at 32 percent, income or employment concerns at 28 percent and lengthy approval processes at 22 percent.

“The opportunity for lenders is to make credit more inclusive, so responsible borrowers are not lost to cost, complexity or eligibility barriers, while consumers can play their part by maintaining healthy credit habits. That is how we turn credit access into lasting financial resilience,” he said.

Fraud exposure also remained widespread as 66 percent of consumers reported being targeted by a fraud scheme in the past three months, including 11 percent who became victims.

Phishing was the most common scheme at 43 percent, followed by smishing at 39 percent, money and gift card scams at 32 percent, third-party seller scams on online retail platforms at 27 percent and vishing at 26 percent.

The Consumer Pulse Study surveyed 961 adults in the Philippines from April 29 to May 19.