Filipinos remain optimistic about their financial future, but many are becoming more careful with how they spend and borrow as inflation continues to strain household budgets, according to the latest Consumer Pulse Study by TransUnion, a credit information company.
The survey of 961 Filipino adults from April 29 to May 19, 2026 found that 74% of Filipino consumers expect their household finances to improve over the next 12 months, supported by expectations of higher income. About 38% said their income increased over the past three months, while 43% reported no change and 19% saw their earnings decline.
Despite that confidence, inflation remains the biggest financial concern. About 84% of respondents ranked rising prices among their top worries over the next six months, followed by job security (54%), recession (44%), and interest rates (44%). The Philippine Statistics Authority reported inflation eased from 7.2% in April to 6.8% in May 2026, but prices remain elevated compared with previous years.
The pressure is reflected in household finances. TransUnion found that 45% of Filipinos expect they will not be able to fully pay at least one current bill or loan, slightly higher than 44% a year earlier.
“Filipino households are entering the second half of the year optimistic but clear-eyed,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion. “They expect their incomes to stay resilient, which keeps confidence broadly intact, yet they feel the weight of inflation on everyday costs, such as rice prices, and uncertainty over upcoming financial commitments amid broader global economic headwinds.”
Many households are responding by cutting non-essential expenses. More than half (55%) said they reduced spending on dining out, travel, and entertainment over the past three months, up from 47% a year ago. At the same time, 49% increased their emergency savings, while fewer consumers tapped retirement funds.
The study also found that more Filipinos are relying on credit to manage expenses. Credit use grew to 17% from 15% a year ago, while 51% expect their bills and loan payments to increase over the next three months.
“Across these behaviors, from trimming discretionary spending to building savings while leaning on credit more selectively, what stands out is how intentional these choices are,” Sun said. “Filipino households are not simply responding to pressure, but prioritizing what matters and being deliberate with every peso, using credit with intention to smooth day-to-day cash flow and bridge spending gaps.”
Sun noted that this shift toward more active financial management is an encouraging sign of growing financial maturity
Interest in borrowing remains strong, with 48% planning to apply for new credit or refinance existing loans within the next year. Demand is highest for personal loans, rising from 45% to 52%, followed by credit cards at 35%. Mortgage interest fell from 17% to 12%.
However, 60% of consumers who considered applying for credit eventually decided not to proceed. High borrowing costs (35%), finding another source of funds (32%), and income or employment concerns (28%) were the main reasons.