When asked to perceive themselves in terms of finances, 48 percent of Filipinos consider themselves as lower middle class.
Global insights company TransUnion released earlier this year the Credit Perception Index, a study aimed at understanding how people perceive and are influenced by credit. This study highlights varying perspectives to encourage broader and more positive use of credit.
From the 1,100 consumers (plus 200 unbanked individuals and 200 small business owners) surveyed by the study, the results show that 84 percent said they have a strong understanding of their finances. However, almost half rate themselves as part of the lower middle class amid the steady economic rise of the country.
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Meanwhile, 28 percent of respondents see themselves belonging to the upper middle class, and 20 percent view their income as lower than those of the lower middle class. Only 3 percent consider their income to be higher than that of the upper middle class. In terms of estimated total wealth, 39 percent reported having Php250,000 and below.
On a positive note, 79 percent of the respondents expressed that they can easily afford daily necessities, and 74 percent said they have access to products and services for finance management. As for what financial tools they have, 85 percent have an e-wallet, 64 percent own a savings account, and 40 percent have a debit card.
Although credit cards have been available in the Philippines for a long time, their penetration remains low. Only 25 percent of the respondents own a credit card. This cautious approach towards credit is evident as 55 percent of the participants expressed a desire to avoid debt, and 54 percent believed that having a credit card would lead them to overspend.
You can read the entire Credit Perception Index study by TransUnion Philippines here.