HIGHER inflation in the Philippines has driven more people to use their credit cards to pay for their needs and wants, a personal finance professional said.
“Because of the high inflation rate, the purchasing power of people’s money has been decreased already. And because of that, people go to credit cards for their spending habit,” said Tyrone Solee on ANC’s “Business Roadshow” on Tuesday, July 11.
He added: “Industry data from (Bangko Sentral) showed that credit card usage increased by 47 percent to P410 billion in the first quarter.”
Despite this, credit card delinquency rates were down to 3.26 percent in the first quarter of 2023 from 4.03 percent in the same period last year, he noted.
“I think the reason for this is that Filipinos find side hustles, specifically during the pandemic, during COVID lockdown, on freelance jobs online and online selling,” he said.
Still, Solee encouraged Filipinos to use their credit cards wisely.
“They should pay in full and on time their credit card debts. And definitely they should avoid spending beyond their capability to pay it,” he said.
He also advised the public to be cautious about taking on loans.
“If you want to buy something, you should save for it first…they should live within their means, learn to budget, prioritize needs versus wants,” he said. (ABS-CBN News)
