Consumer debt is becoming even more “unsustainable” as households continue to turn to bank loans to support even their usual buying activities. | RonWDomingoINQ /PDI
Nicholas Mapa, senior economist at ING Bank, said salary-based loans and consumer credit were quite active throughout the pandemic as incomes were constrained by lockdowns, a trend that was sustained late last year as households needed a lifeline to offset skyrocketing prices.“The bottom line is households are resorting to borrowing just to get by,” Mapa said.
The economist added that while inflation heated up steadily, consumers have had to resort to borrowing to fund even the most basic of purchases.Miguel Chanco, chief economist on emerging Asian markets at Pantheon Macroeconomics, said the overall surge in consumer debt was unsustainable, especially in an environment of rising interest rates.
“This increasing reliance on borrowing arguably is more a sign of weakness in household balance sheets, as people seemingly are having to rely more on loans in the face of intense cost of living pressures and the lingering damage of the pandemic to household savings,” Chanco said. INQSubscribe to our daily newsletter
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pinay teenager who got bashed for calling Charles & Keith a luxury brand is now its brand ambassadorSingapore-based Filipina teenager Zoe Gabriel, who received hate online over her excitement for a Charles & Keith bag, is now its brand community ambassador.
Read more »
Bangsamoro women’s conversations on March 7: women in peacebuildingCOTABATO CITY (MindaNews / 05 March) – Seven women leaders in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) will interact with 40 barangay-based leaders in the region in a …
Read more »
![[OPINION] Years later, Department of Disaster Resilience still the wrong solution](https://i.headtopics.com/images/2023/3/6/rapplerdotcom/opinion-years-later-department-of-disaster-resilie-opinion-years-later-department-of-disaster-resilie-1632499799202070529.webp?w=640)
[OPINION] Years later, Department of Disaster Resilience still the wrong solution'Without strong evidence-based policymaking, consistent political will, proper use of available funds and resources, and a truly inclusive approach, whatever system is designed to address disasters would end up being ineffective.' Opinion
Read more »
Negros Oriental governor shot dead inside his houseThe governor of Negros Oriental was shot dead Saturday morning by still-unidentified assailants at the receiving area inside his home in Barangay Isidro, Pamplona town. | nestleCDN kbrierINQ
Read more »
Law restricting drag shows ‘dangerous’—White HouseWASHINGTON, United States—The White House voiced strong criticism Friday of a new law in Tennessee restricting drag shows in the name of protecting children. "These ridiculous policies
Read more »
Fashion house Vivienne Westwood pays homage to late founder in Paris showModels sauntered through the gilded halls of the Hotel de la Marine overlooking the Place de la Concorde in a chic, punk-infused lineup for the Paris Fashion Week show.
Read more »