Filipino consumers are entering the second half of 2025 with a mix of financial optimism and caution, according to the second-quarter Consumer Pulse Study released by TransUnion.
While many expressed confidence in their income prospects over the next year, their outlook is tempered by ongoing economic challenges such as inflation and job security, results of the survey showed.
Consumers are actively adjusting their spending habits and seeking access to credit as they work towards greater financial resilience, TransUnion said.
More than two in five Filipinos (41 percent) reported an increase in income over the past three months, while 17 percent saw a decline, a slight improvement from 19 percent in the same period last year. Overall, consumers remain optimistic, with 73 percent saying they expect their income to rise in the next 12 months.
However, financial challenges persist, with nearly half (44 percent) of consumers indicating they may be unable to fully repay at least one of their current bills or loans. Inflation (83 percent), job security (59 percent) and interest rates (40 percent) continue to be the leading concerns.
Nearly half (47 percent) of respondents reported cutting back on discretionary expenses, and 24 percent scaled down digital services. At the same time, many took proactive steps to improve their financial standing: 45 percent boosted their emergency savings, and 33 percent accelerated debt repayments, consistent with trends seen a year ago.
“Filipino households are approaching their finances with cautious optimism. While they’re aware of ongoing challenges like inflation and rising costs, many remain hopeful about their financial future,” 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. Our latest Consumer Pulse Study indicates that consumers are not just adapting to current conditions but are also making thoughtful decisions to secure long-term financial well-being,” Sun said.
Access to credit continues to be seen as vital, with 58 percent of consumers saying it is essential to achieving their financial goals. Nearly half (44 percent) believe they have sufficient access to credit, up from 38 percent a year ago. Millennials remain the most confident (47 percent), while Baby Boomers showed a significant rise from 28 percent to 42 percent.
The growing confidence is also reflected in borrowing intentions. Demand for credit remains strong—especially among Gen Z (58 percent) and Millennials (52 percent) who plan to apply for or refinance credit in the next 12 months.
Among those who intended to borrow, personal loans were the most sought-after product (45 percent), followed by buy now, pay later (38 percent), and new credit cards (31 percent).
However, structural and emotional barriers remain: 57 percent of consumers said they had abandoned a credit application or refinancing plan due to fear of rejection based on income or employment status (30 percent) and the high cost of new credit (29 percent).
“It is encouraging to see that more Filipinos now consider credit more accessible. However, the fact that over half of potential borrowers still walk away from their credit plans tells us there is still work to be done,” Sun said.
“Lenders have an opportunity to bridge this gap by offering more inclusive solutions—ones that not only meet practical needs but also build trust and address the emotional barriers that often come with borrowing,” Sun said.
While more Filipinos are using credit, the perceived importance of credit monitoring dipped from 72 percent last year to 68 percent—the lowest level recorded over the past five quarters since the second quarter of 2024.
This drop may reflect a possible shift toward complacency or a sense of familiarity. Across generations, Millennials were most likely to see credit monitoring as important at 73 percent, followed by Gen Z (72 percent) and Baby Boomers (62 percent), while Gen X reported the lowest level (60 percent).
“In times of economic uncertainty, maintaining good credit health is more important than ever. A solid credit profile can provide access to critical financial opportunities when unexpected challenges arise,” Sun said.
“That is why it is vital for the financial industry to invest in better education and accessible tools that empower individuals to understand, manage and take charge of their credit journeys. Supporting consumers in building their financial resilience today lays the foundation for a more secure tomorrow,” Sun said.
The TransUnion Consumer Pulse Study surveyed 943 adult Filipinos from May 5 to 23, 2025. The quarterly survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt and identity theft.
