As the holiday season approaches, Filipinos are gearing up for Christmas celebrations, a time marked by family gatherings, gift-giving, and heightened consumer activity. A recent Nielsen study revealed that 83% of Filipinos prioritize spending on gifts for their loved ones during the Christmas season. This trend aligns with a 2021 Statista report noting a 40% surge in e-commerce transactions in the Philippines during the holidays, underscoring the growing reliance on digital platforms for shopping. Notably, TikTok has emerged as a key player, with 77% of its users utilizing the platform for their Christmas shopping, according to a company-commissioned survey.
The Golden Legacy Financing Corporation Chief Marketing Officer Jonathan Cuyegkeng said that with the Philippines having the longest Christmas celebration globally, strong consumer spending has been the norm during holiday season for Filipinos who have a penchant for gift-giving and holding multiple Christmas celebrations. The “revenge spending” that has come after the pandemic has added to mounting expenditures among Filipinos.
The Financial Toll of Christmas Festivities
While the holidays bring joy and togetherness, they also pose significant financial challenges, particularly for lower-income families. “For families with limited resources, the desire to create memorable celebrations often comes with an emotional and financial toll,” said Cuyegkeng. Research indicates that many families turn to informal lenders with exorbitant interest rates to fund their Christmas expenses, a practice that can lead to deeper financial struggles post-holiday season.
Adding to the pressure is the phenomenon of “revenge spending” post-pandemic, which continues to impact Filipinos’ ability to save for emergencies. Despite manageable inflation rates and a projected positive consumer spending outlook through 2025, as highlighted by FitchSolutions, concerns about rising costs and economic uncertainties weigh heavily on households, particularly those in vulnerable sectors.
Financial Readiness Remains a Challenge
A 2022 TransUnion Consumer Pulse Study found that while more Filipinos are prioritizing emergency savings, 46% still struggle to pay at least one bill or credit obligation in full. The study revealed that emergency savings are often depleted to cover recurring expenses, leaving families unprepared for unforeseen financial challenges. As the holiday season amplifies spending, maintaining financial stability becomes even more daunting.
Cuyegkeng cautioned against turning to unregulated or high-risk loan providers, noting that unclear terms and high-interest rates often trap borrowers in a cycle of debt. “While borrowing is not inherently bad, it should be used for the right intentions, such as addressing urgent needs or achieving long-term goals, rather than splurging on non-essential expenses,” he added.
Empowering Borrowers Through Responsible Credit Solutions
The stigma around loans is gradually shifting, as more Filipinos recognize the value of accessible and transparent credit solutions. According to the Consumer Pulse Study, 96% of Filipinos believe that access to credit is crucial for achieving financial goals. This is where institutions like The Golden Legacy Financing Corporation come in, offering tailored financial solutions designed to empower borrowers.
“Credit, when used responsibly, can help people navigate emergencies, start businesses, or pursue further education,” Cuyegkeng explained. TGLFC’s innovative credit model allows customers to re-loan after paying off at least half of their loan amount, creating a seamless borrowing experience. Additionally, TGLFC’s SEC registration ensures transparency and trust, setting it apart from informal lending options.
Supporting Vulnerable Sectors
TGLFC’s services are particularly beneficial for sectors often excluded from traditional lending systems, such as AFP and SSS pensioners. These groups face barriers due to age restrictions and perceived credit risks. “At TGLFC, we honor pensioners by providing them with financial tools that empower them to live their lives fully and address unforeseen expenses.”
For employees, TGLFC collaborates with companies to offer legitimate salary loan products, enabling financial readiness for emergencies or family needs. “Our goal is to be a trusted financial partner, providing accessible, flexible solutions that help Filipinos manage their finances with confidence.”
A Legacy of Trust and Service
With over three decades of experience, TGLFC has become a reliable financial partner for pensioners and employees across the Philippines. Operating in major cities like Manila, Dagupan, Tarlac, Lipa, Naga, Iloilo, and Cebu, the company plans to expand further to meet the growing demand for its services.
As the Christmas season approaches, TGLFC continues its mission to provide financial empowerment to Filipinos, ensuring they can celebrate the holidays without compromising their financial well-being.
