MANILA, Philippines – Filipino consumers are entering the second half of 2025 with a mix of financial optimism and caution, according to the latest Q2 2025 Consumer Pulse Study released by TransUnion (NYSE: TRU).
While many expressed confidence toward their income prospects over the next year, their outlook is tempered by ongoing economic challenges such as inflation and job security. In response, consumers are actively adjusting their spending habits and seeking access to credit as they work towards greater financial resilience.
Over two in five Filipinos (41%) reported an increase in income over the past three months, while 17% saw a decline, slightly better than 19% during the same period last year. Overall, consumers remain optimistic, with 73% saying they expect their income to rise in the next 12 months.
However, financial challenges persist. Nearly half (44%) of consumers indicated they may be unable to fully repay at least one of their current bills or loans. Inflation (83%), job security (59%), and interest rates (40%) continue to be the leading concerns.
Filipinos balance spending cuts with financial planning
Nearly half (47%) of the respondents reported cutting back on discretionary expenses, and 24% scaled down digital services. At the same time, many took proactive steps to improve their financial standing: 45% boosted their emergency savings and 33% accelerated debt repayments, consistent with trends seen in Q2 2024.
“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. 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,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.
Credit access remains a critical financial enabler
Access to credit continues to be seen as vital, with 58% of consumers saying it is essential to achieving their financial goals. Nearly half (44%) believe they have sufficient access to credit, up from 38% a year ago. Millennials remain the most confident (47%), while Baby Boomers showed a significant rise from 28% to 42%.
This growing confidence is also reflected in borrowing intentions. Demand for credit remains strong, especially among Gen Z (58%) and Millennials (52%) 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%), followed by buy now, pay later (38%), and new credit cards (31%).
However, structural and emotional barriers remain: 57% of consumers said they had abandoned a credit application or refinancing plan due to fear of rejection based on income or employment status (30%), and the high cost of new credit (29%).
“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. 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,” added Sun.
Credit monitoring awareness declines despite strong credit demand
While more Filipinos are using credit, the perceived importance of credit monitoring dipped from 72% last year to 68%—the lowest level recorded over the past five quarters since Q2 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%, followed by Gen Z (72%) and Baby Boomers (62%), while Gen X reported the lowest level (60%).
“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. 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,” said Sun.
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.
