Assessing the impact of the utilization of digital lending apps on the spending practices and debt management of university students in Sampaloc, Manila - Gaac, Fredzy Boy P.; Herrera, edmar F.; Lasim, Kathrina Sofia A.; Margallo, Aira A.; Mata, Buenard Novix M.; Sunga, Lhynzel G. (Manila: PLM, 2025)
ABSTRACT: This study assessed the impact of digital lending app utilization on the spending practices and debt management of university students in Sampaloc, Manila. As financial technology becomes more accessible, students increasingly rely on digital lending platforms to fund leisure-related expenses despite limited income. This raises concerns about impulsive borrowing, poor planning, and low financial literacy. The study explored how credit limits, repayment sources, debt strategies, and debt contract awareness influence student financial behavior. Using a descriptive-correlational design and quantitative approach data were collected through online surveys administered to university students across Sampaloc. Statistical analyses revealed that the utilization of digital lending apps has a significant impact on students spending practices and a significant impact on students debt management. Debt contract awareness significantly moderates the impact of digital lending app usage on students spending practices, as students with greater awareness borrowed more cautiously. However, debt contract awareness does not significantly moderate the impact of digital lending app usage on students debt management. Stable income sources, such as allowances or scholarships, aided repayment, while budgeting and installment strategies were perceived as ineffective. Higher credit limits were not directly linked to increased spending but were often granted based on repayment behavior, reinforcing app-based reward systems. The study concludes that digital lending apps encourage overspending and hinder debt control among students, especially those with low financial literacy. To address this, financial literacy programs should emphasize real-life borrowing, transparent loan terms, and tighter regulation. A final action plan was developed promoting responsible digital lending, including regulated practices, in-app financial tools, mandatory credit reporting, and stronger coordination between fintech firms and regulators to ensure safer financial engagement for student.
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Keywords: academic writing