Credit Card Loans — More than One-Fourth of Total Consumer Loans in Philippines

Where do Filipinos use their bank loans?

Based on reports from the Bangko Sentral ng Pilipinas as of the last quarter of 2010, Filipinos used loans to buy:

1. Homes
2. Cars
3. Appliances, cellphones, food, clothing, shoes and household needs (everything that credit card can buy).

It’s sad that more than one-fourth of total loans were used for credit card purchases, which mostly have quick life like groceries, toiletries, shoes, clothing and cellphones.

Kung idagdag pa yong Other Consumer Loans, which presumably are the multi-purpose personal loans, these loans used for relatively quick-use items account for 35.26 percent of total loans, more than one-third, malapit na sa percent ng home loans.

For me, okay lang ang appliances kung kailangan talaga, like a washing machine. Pero kung palitan lang yong flat TV with a bigger glat TV, hindi na sensible and practical na credit card ang gamitin. Mas okay kung antayin yong extra money.

In a number of Philippine schools, credit cards are now being used for paying tuition fees, which I think is a sensible use for credit card loans, particularly if the lower-rate installment plans are used.

Total Consumer Loans 472.630 Billion Pesos
Home Loans 188.348 39.85 % of total
Credit Card Loans 120.299 25.45 % of total
Auto Loans 117.633 24.89 % of total
Other Consumer Loans   46.350 9.81 % of total

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