Less Filipinos fall short of meeting credit card payments

The delinquency rate has been falling since the COVID-19 pandemic started.

The delinquency rate of credit cards in the Philippiones fell to 3.26% in Q1, data from the Credit Card Association of the Philippines (CCAP) showed.

Card delinquency occurs when a credit card holder fails to pay at least the minimum amount of their debt for three consecutive billing cycles.

Since the onset of the COVID-19 pandemic, delinquency rates have continued to melt.

Despite a 47% increase in gross billings to P410b in the first quarter of 2023, compared to P279b in the same period of 2022, delinquency rates have been declining.

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CCAP said the surge in billings, the highest growth rate since the start of the pandemic in 2020, reflects increased consumer spending as Filipinos engage in shopping, travelling, and purchasing goods after nearly two years of lockdown.

Higher consumer spending serves as a significant driver in the economy's recovery from the pandemic.