Consumer Loans Fuel Car Purchase Increase
Published: January 7, 2015 | Updated: November 7, 2019 | Posted by: Moneymax | Personal Loan
According to data just published from the Bangko Sentral ng Pilipinas, Pinoys have increased borrowing by an incredible 21% compared to the previous year. It is now at the eye-watering amount of P849.7 billion. Borrowing to buy homes or cars as well as other loans against salaries has all increased. The biggest riser was real estate with a jump of 25%.
This is not all worrying news. The increase in the number of pesos borrowed by consumers is driving spending in restaurants, at the mall, and on other leisure activities. This consumer spending is a major driver of the economy.
How can anyone afford to repay all of these loans? Almost everyone does. Banks record this percentage of non-repayment and report it to the Central Bank of the Philippines, which then informs the public. The number of bad loans is only 5%.
Did you also think there would be a reduction in traffic? P217.4 billion was borrowed by Filipinos across the nation to buy four-wheeled vehicles.
As the prices of homes, cars, and seemingly everything else go up – how can you survive? By saving whenever you can. You can start right here.
Did you know that 9 out of 10 Filipinos pay too much for their car insurance? Make sure you don’t lose out by comparing 14 insurance providers and saving money now with MoneyMax.ph.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.