by Abelardo de la Peña Jr.
WHAT’S HAPPENING
- Another recession situation: Latinos are pulling out the credit cards more often for everyday necessities, but also worrying about not being able to pay down the debt, according to a National Council of La Raza report (ChicanoNews.net 1.19.10).
- The report, based on findings from focus groups conducted in Chicago, Atlanta, and San Antonio, shows that Latino card users are relying on their credit to pay for groceries and household emergencies like hospital bills or auto repairs.
- Other key finding include Latinos’ belief that credit is important and should be used responsibly; their collective concern about overspending when jobs are unstable and income unpredictable; and the fact that they don’t always read the fine print of credit contracts, which sometimes leads to negative consequences.
WHAT THIS MEANS TO BUSINESS
- Like all credit card users, Latinos are struggling to keep their spending under control, reduce their debt and build or maintain their credit history. Using their credit cards for necessities may not be the best option, but applying for cards with lower interest rates and fees, utilizing other payment methods and comparing costs will serve them well.
RESOURCES
- “Survival Spending: The Role of Credit Cards in Hispanic Households” by National Council of La Raza 2010
