Publication: Manila Times
Publication Date: October 7, 2020
www.manilatimes.net/2020/10/07/business/credit-card-billings-fell-27-in-h1/777322/
Credit card billings declined by double digits in the first half of the year on the back of coronavirus-related lockdowns, according to an industry group. In a statement on Tuesday, the Credit Card Association of the Philippines (CCAP) said credit card usage also slumped in the first six months as different businesses were forced to stop operations during the lockdowns. This reflected a 27-percent decrease in credit card billings from the same period a year ago. The group added that the high jobless rate — 17.7 percent in April, 10 percent in July — not only made cardholders hesitant to apply for new credit cards, but also made it harder for them to settle their credit card debt. “The high unemployment rate, as well as the loss of livelihood for self-employed individuals and small business owners, took its toll on the credit card industry,” Alex Ilagan, CCAP executive director, was quoted as saying in the statement. “We saw an unprecedented rise of credit card holders being unable to pay their balance, which resulted in the credit card past due level growing by as much as thrice by September 2020 as compared to the pre-ECQ (enhanced community quarantine) level.”