In the Philippines, poverty is a pressing issue, affecting a significant portion of the population. Various factors contribute to this precarious situation, with poor awareness and a desire to economize even at the risk of personal safety being notable contributors. A concerning trend in this context is the rise of illegal lending practices. To combat this, resources like the Allthebestloans website have released an illegal loan apps list, aiming to prevent scam episodes and protect vulnerable families.

Poor Families at Risk in the Philippines

In the Philippines, the struggle against poverty is a critical issue that affects millions. As of Dec 2022 survey, an alarming 51% of Filipino families consider themselves poor, which translates to approximately 14 million self-rated poor families​​​​. This staggering number underscores a multifaceted crisis, rooted not just in economic factors but also in a lack of awareness and the often desperate need to save money, regardless of the risks involved.

One significant risk factor is the prevalence of illegal lending practices. To combat this, the Allthebestloans website has taken a proactive step by releasing an “illegal lending apps list.” This initiative aims to protect vulnerable populations from falling victim to scams, which are particularly rampant among those struggling financially. The list is a crucial tool in spreading awareness and helping poor families make informed decisions about their financial dealings.

The poverty situation in the Philippines is further complicated by the national poverty threshold, which is set at PHP 12,030 per month for a family of five. This means each person has to survive on PHP 79 per day for both food and non-food requirements​​. In 2021, 18.1% of the population lived below this national poverty line, and 2.2% of the employed population earned less than $1.90 a day in purchasing power parity​​. These statistics paint a stark picture of the economic realities faced by a significant portion of the Filipino population.

Who Can Be Judged as Poor in the Philippines

In the Philippines, the determination of who is considered poor is closely tied to the concept of living wages, which reflect the minimum income necessary to meet a family’s basic needs. As of 2023, the daily minimum wage in the Philippines is estimated to be around PHP 547, with projections indicating a trend towards PHP 590 per day​​. Нowever, this figure falls significantly short when compared to the family living wage.

For instance, in the National Capital Region (NCR), the family living wage as of July 2023 is estimated at PHP 1,164 per day or PHP 25,327 per month​​. Despite recent wage hikes, the minimum wage in the NCR of PHP 610 per day is still only 47.7% of the required family living wage​​​​. This gap highlights a critical issue, even those earning the minimum wage can still be considered poor due to their inability to meet basic living standards.

Why Poor People are an Easy Prey for Scammers?

In the Philippines, poverty creates a fertile ground for scammers, making the poor especially vulnerable to financial exploitation. Several factors contribute to this susceptibility:

  1. Many poor individuals lack formal education and awareness about financial matters, making it challenging for them to discern legitimate financial opportunities from scams. This gap in knowledge is often exploited by scammers.
  2. Facing daily financial struggles, the poor are often in urgent need of money to cover basic needs like food, rent, and healthcare. This urgency can lead them to overlook the risks associated with unverified lending sources.
  3. Formal financial institutions typically have stringent requirements for lending, such as credit history checks and collateral, which many poor individuals cannot meet. This exclusion drives them towards informal lenders, who may be scammers.
  4. Scammers often lure victims with promises of easy, quick money with fewer requirements. These offers are particularly appealing to those who have been denied loans from formal sources.
  5. While the digital age has brought many advantages, it has also increased the risk of online scams. Poor people, often lacking digital literacy and access to secure technology, can fall prey to sophisticated online scams.
  6. Poor individuals may lack a support network that can offer advice or warnings about potential scams. This isolation makes it easier for scammers to manipulate and deceive them.
  7. How to Avoid Scammers

Avoiding scammers in the Philippines, especially in the context of lending, requires a combination of vigilance, awareness, and the use of reliable resources. One significant step in this direction is the release of the “illegal lending apps list” by Allthebestloans, which helps identify potentially fraudulent lenders. This list serves as an essential tool for individuals to cross-reference and avoid engaging with unverified lending platforms.

Another crucial measure is to verify the legitimacy of lending companies through official channels. The Securities and Exchange Commission (SEC) of the Philippines maintains a “List of Recorded Online Lending Platforms” that includes all financing and lending companies recorded with the SEC along with their online lending platforms, as per the SEC MC 19, series of 2019​​. Checking this list ensures that the lending company is registered and recognized by the government, significantly reducing the risk of falling prey to scams.

In addition to these resources, individuals should also:

  1. Before engaging with any lender, it’s important to research their reputation, read reviews, and seek feedback from other users.
  2. Carefully review the terms, interest rates, fees, and repayment schedules of any loan offer.
  3. Be wary of lenders offering unusually low-interest rates or quick and easy approvals without proper checks.
  4. Be cautious about sharing personal and financial information, especially with unverified sources.
  5. When in doubt, consult with financial experts or trusted individuals before making any commitments.


The plight of the poor in the Philippines is compounded by various risks, including the threat of financial scams. Awareness and access to reliable information, such as the “illegal lending apps list,” are key in mitigating these risks. It is imperative for individuals to be vigilant and for support systems, both governmental and non-governmental, to be strengthened to address the multifaceted challenges faced by impoverished communities in the Philippines. The journey towards economic stability and security is a collective one, requiring the efforts of all stakeholders to create a more equitable and prosperous society.