Debt Free News

Study shows minority debt problems

January 2, 2007

As if many of our debt free news article readers have not had enough trouble trying to get out of debt. According to a newly released study of debt issues in the US, minorities are more likely to have debt issues that are problematic.

In fact, the study zeros in on Hispanic and African American families, saying that it finds these groups are more likely to carry more debt such as credit card debt and have more trouble trying to become debt free than white families.

This new debt study in the US was conducted by a well known think tank company Tomas Rivera Policy Institute (TRPI). The company is based out of Southern California in the LA area.

The report goes on to state that ethnic and racial minorities are chiefly at risk of debt problems because of their lower earning capabilities. Also, it says that their savings and other financial holdings are also lower than a non minority typically. In fact, the unemployment rate is also higher according to the new study.

In the report, our debt free news department read that some 50% of African American families in the US have credit card debt, while 45% of the Hispanic families living in the US have credit card debt. As far as white families are concerned, the report states they carry 35% credit card debt.

Our debt free article readers will find this interesting – the study shows that Hispanics also spent a bigger part of their household earnings to pay down their debt at the rate of thirsty one percent - as opposed to twenty two percent of African Americans in the study.

What’s more, the compelling new study also shows that more Hispanics are getting credit cards as of late. 15 years ago, statistics showed nearly 43% of Hispanics in the US had credit cards. As recently as 6 years ago that rate jumped to 53%. Even so, the study says that a 82% of white families living in the US have credit cards.

When you think about it really does not surprise many – this study. It shouldn’t according to many economists in the LA area that were interviewed in the debt findings report. One economist went on to say that he believed that these minority groups rack up credit card debt because they do not save – they spend what they earn right away.

Additionally, it is reported in the study that when debt gets bigger that Hispanics are more inclined to get help by credit counselors or via debt consolidation loans. But, many (20%) Hispanics (in the LA area) that have received help with debt consolidation and or other types of debt reduction services that they were not pleased with the serviced they got.

 This report is interesting to our debt free patrons at DebtFree24.com because it sheds new light on the debt world that surrounds us all. By providing our readers with report information and news statistics regarding debt, we hope our readers will take the information they read and implement it into their everyday lives regarding debt.

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