Wary Filipinos plan for more savings, less debt in 2024

MANILA  -With 2024 just around the corner, cautious Filipinos are keen on welcoming the new year with more savings and less debt amid economic pressures brought about by rising costs, based on a survey by TransUnion Philippines.

According to the firm’s Q4 Consumer Pulse Study, 80 percent of the surveyed Filipinos were expecting bigger sources of income in the next 12 months, but they are still tightening their belts despite this.

More than half said they were choosing to save up for the rainy days while 34 percent wanted to settle their debts immediately.

In the next three months, 48 percent would be cutting spending on non-essential items while 44 percent would avoid big-ticket purchases like cars ad appliances. Some 21 percent would even scrimp on digital services.

“This nuanced approach to managing finances reflects a population that is navigating economic uncertainties with caution,” the study noted.

Less Filipinos are also looking at loans to meet their financial needs, with only 58 percent considering them. This showed a decline from 64 percent in the previous survey.

In addition, more than half who considered securing new credit lines aborted their plan to do so primarily due to high borrowing cost. Others decided against getting loans as they turned to alternative funding sources.

Only 35 percent also said they were doing credit monitoring, a dip from 44 percent a year ago.

“Understanding one’s credit health is an important step in financial management to safeguard a healthy financial future. It helps consumers stay on top of their creditworthiness and be ready for any immediate financing needs in an uncertain economic environment,” TransUnion Philippines president and CEO Pia Arellano said.

Meanwhile, the study revealed that digital fraud was still a primary issue as 64 percent said they were targeted but did not fall victim.