Many countries consider gross household income as a determinant of socioeconomic position, and the Philippines is no exception. According to data from the Philippine Institute of Development Studies (PIDS), income categories for an average household of five people can be divided into seven groups as follows: Rich; High income but not rich; Above average income; Middle class; Low middle class; Low income but not poor; Poor. Among them, the middle class plays an important role in the economy of a country. They are also the ones who regularly apply for personal loans, especially online cash loans. Why can we say that? The article will reveal some of main factors.
The middle class is basically defined as the socioeconomic group between the rich and the poor. In a more financial definition, the middle class includes those who have the means and resources to make their own lifestyle choices without compromising other basic needs. In economics, on the other hand, the middle class is an important measure of a country’s economic standing.
The middle class in the Philippines has a household income of about ₱43,828 to ₱76,669 per month
According to data from the Philippine Institute of Development Studies (PIDS), which combines some additional data from different sources, a family is considered middle class in the Philippines if they satisfy the following criteria:
Household income is about ₱43,828 to ₱76,669 per month.
Total consumption and travel expenses account for about 66.2% of monthly income.
About 21.9% of your income can be considered discretionary funds that you can spend on luxury items, vacations, goods; non-essential services, or investment and savings.
Data source: https://www.imoney.ph/articles/middle-class-sector-philippines/
The most significant threat to the middle class is probably economic stability. While it is true that economic fluctuations will affect all people regardless of class, the middle class is still the first group under the hardest hit.
The next threat to the middle class cannot be ignored. In the Philippines, most of the middle-class population is working class, so they rely heavily on wages - their main source of income.
Threats to the middle class in the Philippines
In addition, the upper class is also very worried when facing economic inflation. Although inflation affects everyone, it has a much larger impact on the middle class. Rising cost of living or taxes results in financial shortages. If the government does not take measures to reduce inflation, the middle class will easily fall into financial difficulties and pressures.
Finally, the middle class in the Philippines are often worried about the social safety network. The Philippine government regularly provides financial support to its people through agencies such as Philhealth, Pag-IBIG and SSS and these benefits provide sizable financial support to the middle class. If financial support from the government becomes less effective, the spending ability of the middle class will be significantly hindered.
As mentioned above, the middle class in the Philippines is most affected by economic fluctuations and inflation, etc. At that time, they need a way to quickly get money to deal with immediate financial difficulties. Getting cash loans online is the solution chosen by many people because of its simplicity, speed and safety. Moreover, because the middle class is more likely to spend than the poor but not as wealthy as the upper class, they often tend to get cash loans online to cover their living expenses. It can be said that the middle-class people in the Philippines are the major object of applying for cash loans online.
Many middle-class people in the Philippines prefer online cash loans
MoneyCat creates favorable conditions for the middle class in the Philippines to apply for a cash loan online easily, quickly and effectively. If you are middle class, that means you have a job in the Philippines and have a fixed monthly income, these have met most of the conditions to apply for a loan at MoneyCat.
If you are also a middle-class person in the Philippines and are in need of applying for a cash loan online, you can refer to MoneyCat. Or if you have any financial difficulties, you can also reach out to us. MoneyCat is the leading 24/7 guaranteed online financial solutions and consulting platform in the Philippines.