• You can’t know where you’re going unless you know where you
are. Nonetheless, 21 percent of Latinos admit to having no idea
what they spend their money on. That’s roughly 5 million people
who are ignoring a basic step to financial freedom.
• Particularly frightening is the fact that 58 percent, or roughly 13
million, among the Latino population report no savings beyond that
which is earmarked for retirement. These people are one emergency
away from financial disaster.
• Further, 37 percent, which calculates to almost 9 million Latinos,
have nothing saved for retirement. Combining these two numbers
reveals that several million Latino adults are living on financial thin
ice, unprepared for the inevitable emergency or retirement.
• Insurance coverage can substantially reduce financial risk.
Consequently, having adequate coverage is a key component of main-
taining good financial health. Latinos are again in jeopardy, with
likely to receive subprime loans compared to whites during 2006. - Thirty-five percent, or more than 8 million, having no medical
About 26% of mortgages for home purchase by whites were sub- insurance.
prime. For Hispanics, it was 47% and for African Americans, - Fifty-nine percent with no homeowners insurance.
53%. Whether this is due to discrimination, or bad advice or - A whopping 84 percent have no renters insurance.
something else remains a question to be pondered by groups like - Sixty-two percent do not have life insurance. That’s roughly
the Economic Policy Institute (EPI). Recent studies suggest that 14.7 million who will potentially leave their families in financial
creditworthiness—alone or in combination with factors other than distress upon their death.
race—cannot account for these disparities. These studies coupled • Credit can be a double-edged sword, working for you or against
with the long history of racial discrimination in lending, raise the you depending on the choices you make. Even though you can pay
prospect that discrimination may be a real factor in the high rates cash for many purchases, most will need a positive credit report
of lending for minorities. when it comes time to buy a house or a car. In the Latino commu-
As we have seen with the recent mortgage meltdown, these nity, the following was observed:
financial issues eventually wind up affecting all of us in one way or - Forty percent state that they have no credit card. This means
another and desperately need to be addressed with more regulation that close to 9.5 million people have no access to credit for an
and oversight and more financial literacy programs and education. immediate purchase.
Personal Finance 101 should be mandatory as a part of every high - In spite of being able to obtain a credit report free of charge, only
school education. More information should be made available in 32 percent of Latinos have ordered their credit report.
Spanish and other languages. Predatory lending should be better - Although there is no single credit score used by all lenders, it is
regulated. Loans and credit should be made much easier to under- generally felt that a score over 700 allows the borrower the best
stand and less of a potential mine field. All of this may be true, but available rates. Unfortunately, 32 percent of Latinos reported a
ultimately, your financial health is up to you and depends on the score under 700. This subjects roughly 7.5 million adults to paying
choices you make. a higher interest rate and potentially restricts their borrowing power.
We live in a credit-dominated society, one that is complex and
quickly changing. Even the most financially savvy among us struggle One last disturbing fact has a silver lining. Even though 79
at times to put all the pieces together. However, it is something that percent, or roughly 18.8 million Latino adults, report that they have
every individual must take responsibility for. It is especially important never received professional advice about financial issues, help is
for those who have children and dependent family members. Make a available. “With both English and Spanish speaking counselors,
budget, create a plan and educate yourself. If you are already in trou- the NFCC stands ready to assist anyone who reaches out for finan-
ble, get help. Ignoring financial and credit problems the worst thing cial help. Additionally, counseling is either free or low cost, with all
you can do. Take action and take control of your own destiny. fees being waived in the case of hardship. We try to remove any bar-
Here are a few more reasons to remind you to remain on guard. rier between the consumer and
The National Foundation for Credit Counseling (NFCC) – MSN financial literacy,” said Gail
Money 2008 Financial Literacy Survey (conducted early in the year) Cunningham, spokesperson for
revealed these disturbing results, particularly as they relate to Latinos. the NFCC.
You don’t have to solve
Most startling among the findings includes: your financial problems alone.
• Twenty-eight percent, or roughly 6.6 million Latinos, admit to A National Foundation for
struggling to pay their bills each month, sometimes skipping month- Credit Counseling Member
ly payments, having accounts in collections or seriously considering Agency is just a call or click
filing for bankruptcy. away. To begin your journey to financial
• For most households, housing costs comprise the single largest freedom, contact the certified credit counselor closest to you by call-
monthly expense. Roughly 1.7 million Latinos reported that they ing1-800-388-2227, or en Español, dial 1-800-682-9832. To find
either paid their mortgage late or totally missed a payment in the last an agency online go to
www.DebtAdvice.org or
12 months, putting their most important investment at risk.
www.TermineConsudeuda.org.
S A L U D O S 44 H I S P A N O S
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