FAMILIES’ INCOME EATEN BY VIRUS — POLL

Whether it’s their financial health or changes in day-to-day living, the lives of millions of people in the Philippines and abroad have changed dramatically because of Covid-19

With the pandemic pounding the country hard for more than a year now, its most devastating effect is on household income, affecting the financial health, wellbeing, or had changed the daily routine of Filipino families.

A recent Consumer Pulse study conducted by global information and insights company TransUnion, found 93 percent of Filipinos have discovered that their household income were negatively impacted by coronavirus disease 2019 (Covid-19) while 65 percent of respondents said their household income was greatly diminished by the pandemic.

The same survey, involving 865 adults, conducted from 5 to 22 March 2021, showed 28 percent saying they already feel the negative impact while 49 percent indicated they expect household income to be affected if the pandemic persists.

“Whether it’s their financial health or changes in day-to-day living, the lives of millions of people in the Philippines and abroad have changed dramatically because of Covid-19. The Philippines, like many other countries, has had extended periods under lockdown, and we continue to manage the ongoing impact as the number of cases remains high,” TransUnion Philippines president and CEO Pia Arellano said.

She explained the aim of the Consumer Pulse research is to better understand the financial impacts of the pandemic.

Informing consumers, businesses, and government decision makers is the goal of the poll, Arellano noted.

Nearly half lost work

Among those in the survey who said the restrictions had eroded family income, 45 percent noted they or someone in the household had lost their jobs; 42 percent had their work hours reduced and 24 percent pointed to a household-owned small business that closed.

The survey also revealed those whose income is currently negatively impacted, 88 percent expressed concern over their ability to pay debts with 48 percent admitting they will not be able to pay their bills within four weeks.

Some 47 percent indicated they would be delayed on mortgage payments, 41 percent will not be able to update their auto lease, 36 percent would be delinquent on house and rental and 35 percent would fall short of their credit card payments.

In addition, consumers have made changes in their approach to savings or debts as 47 percent reported cutting back on discretionary spending while 31 percent canceled or reduced digital services.

Meanwhile, 48 percent said they had saved more in emergency funds; 26 percent had paid down their debt faster; and 19 percent had saved more for retirement.

The Philippines, like many other countries, has had extended periods under lockdown.

Forty-nine percent of respondents acknowledged plans to use their savings for bills payment and 44 percent indicated the prospect of borrowing more from a friend or family member.

Meanwhile, 45 percent said they can partially pay bills or obligations and 17 percent plan to take out a personal loan.