A survey by global information and insights company TransUnion found that more than half of Filipinos are increasing the money they are allotting for emergency funds as the economy is expected to slow down and the prices of goods continues to rise.
Its Consumer Pulse Study for the Philippines for the second quarter which covered 1,005 adults showed 56 percent deciding to save more for their emergency fund. 43 percent of respondents cut back on discretionary spending like dining out, travel and entertainment, compared to the 22 percent that spent more on similar activities.
The study found that majority of Filipinos consumers are looking to maintain the trend of saving more and spending less, with 61 percent expecting their large purchase spending to decrease or stay the same, and 48 percent looking to spend more on bills and loans. When it comes to meeting financial obligations, 46 percent said they are unable to pay at least one of their current bills and loans in full and that they intend to use money from savings to settle arrears.
In terms of achieving financial goals, a whopping 96 percent of Filipinos believe it is important for them to have access to credit, with more than half intending to apply for a new credit or refinance existing credit within the next year. However, 59 percent of those looking for credit options dropped the plan due to the high cost of new credit or refinancing, rejected applications and long waiting times.
Saving and access to credit are ways of coping during difficult times and while it is good that more Filipinos are learning to save, access the credit is an important part of the equation but unfortunately remains a problem. This is an opportunity that the private sector and government can provide solutions that would be appreciated by Filipinos, especially during these challenging times.*
