Financial Stability Holds as Filipinos Take a More Selective Approach to Credit

Most Filipinos report steady finances with 75% expecting income growth in the next 12 months
Household budgets tighten as half (50%) of Filipinos plan to spend less this holiday season
Borrowing becomes more intentional with personal loans (49%) and buy now, pay later (35%) driving most credit activity

Manila, Philippines, December 11, 2025 – Filipino households are closing 2025 on firm financial footings, navigating a still-shifting economic environment with a blend of optimism and restraint. The Q4 2025 Consumer Pulse Study by TransUnion (NYSE: TRU), shows that while consumers continue to feel the pressure of daily expenses, they are adapting with a more deliberate approach to both spending and credit use.

Income stability remains a defining theme this quarter. Over two in five consumers (42%) reported an income increase in the past three months, while 41% saw no change, suggesting that while momentum has eased, households are not slipping backward. More importantly, consumers are looking ahead with confidence.

Three in four Filipinos (75%) expect their income to rise over the next 12 months and eight in ten (80%) are optimistic about their household finances for the year ahead. Together, these trends reflect a picture of resilience and steady control. Filipinos are learning to operate within tighter margins, managing pressures without losing confidence in their financial trajectory.

Cautious spending reflects a balanced mindset

Even with improving sentiment, caution remains the dominant feature of household spending. Inflation for everyday goods continues to be the top concern (81%), followed by job stability (57%) and interest rates (45%) — the same priorities Filipinos have held since 2024. This consistency suggests that consumers are budgeting with long-term challenges in mind, not short-term shocks.

Spending behavior also reflects this balance between confidence and caution. Nearly half (47%) of households have scaled back discretionary activities such as dining out and travel. One in four (25%) cut back on digital services, while another quarter (25%) dropped subscriptions or memberships altogether. Half of Filipinos (50%) also expect to spend less on holiday shopping compared to last year, showing more deliberate spending even during traditionally high-consumption periods.

Looking ahead, consumers expect further shifts in their cost structure: 47% foresee rising bills and loan payments next quarter, 42% expect medical costs to increase, and 36% anticipate higher retail spending. Yet, only a minority (27%) plan to increase spending on large purchases like appliances or vehicles. In essence, instead of pulling back from economic activity, Filipinos are redefining what “smart spending” looks like in a high-cost environment.

“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.”

Credit access remains stable as borrowing becomes more intentional

As households stabilize their finances, their attitudes toward credit are evolving. While close to three in every five Filipinos (58%) say access to credit is very important for achieving their financial goals, this marks a slight dip from the same time last year, hinting that consumers are depending less on borrowing for immediate needs and more for deliberate, planned financial actions.

Confidence in credit access remained steady with 42% saying they have sufficient availability. Gen X (47%) and Millennials (46%) remain the most confident. However, the more significant shift lies in how people choose to borrow. Intent to apply for or refinance credit fell to 47% from 53% last year, and most planned borrowing now leans toward smaller, more flexible products such as personal loans (49%) and buy now, pay later (BNPL) (35%) arrangements.

Even abandoned applications reduced, dropping to 56% from 64% last year, though high borrowing costs (31%), possible rejection due to income or employment status (28%), and lengthy processing times (24%) still create friction. Overall, the data paints a maturing market: credit remains available, but Filipinos are making decisions with more scrutiny and financial self-awareness than before.

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

Empowering Filipinos with accessible credit education

Recently, TransUnion announced its partnership with the Bangko Sentral ng Pilipinas (BSP) to introduce an interactive credit education module on the BSP E-Learning Academy (BELA) to help consumers understand and manage their credit scores. These resources will provide practical guidance on building and maintaining healthy credit profiles, equipping Filipinos with the knowledge to make informed financial decisions. The modules are set to be available starting next year.

This milestone marks the first collaboration between BSP and a credit reference agency on financial education initiatives through BELA in the Philippines, underscoring a shared commitment to financial literacy and inclusion. By delivering accessible, engaging content, the initiative aims to strengthen financial resilience and unlock better opportunities for millions of Filipinos.

“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,” said Sun.

TransUnion’s Consumer Pulse Study surveyed 961 adults from September 25 to October 15, 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 Q4 2025 Consumer Pulse Study.