Survey Reveals Spanish Speaking Americans are 2-3 Times More Likely to Have Pandemic-Related Money Problems
A survey of people who approached Consolidated Credit about their debts shows those who are primarily Spanish speakers are more likely to experience financial challenges due to COVID-19.
FORT LAUDERDALE, Fla., June 25, 2020 /PRNewswire/ -- A Consolidated Credit survey of debt-conscious Americans reveals 60 percent have lost income during the COVID-19 shutdown and aftermath. That number didn't shock financial experts, but this number did: 90 percent of Hispanics whose primary language is Spanish, reported pandemic-related income loss.
More than 1,100 Americans took the survey, which was provided in English and Spanish and had responses from all 50 states, Washington D.C. and Puerto Rico. The findings come six months after the World Health Organization declared a global health emergency on January 30, 2020.
The "Pandemic Shutdown Finance Survey" shows:
- Only 17 percent of Spanish speaking respondents have emergency savings, compared to 30 percent of the general population.
- Fifty-six percent of Spanish speaking respondents said they are late on credit card payments because of the pandemic, compared to 38 percent of the survey respondents in English.
- Twenty-four percent and 26 percent of English and Spanish speaking respondents respectively say they would take on a new credit card or loan to pay off debts or for emergency expenses.
The survey didn't delve into the reasons for these disparities, but Consolidated Credit experts have some theories. "According to Pew Research Center on Hispanic Trends, many Hispanics work in retail, hospitality, and other service jobs – sectors that were hit hardest by the shutdown," says April Lewis-Parks, Consolidated Credit's longtime director of education who's monitored personal finance trends for nearly two decades. "Additionally, we've found that many first- and second-generation Americans are simply unaware of all the debt-relief options available to them in this country."
The survey closed with 611 responses in English and 579 responses in Spanish. The good news is that since more Hispanics are being born in the U.S. the financial literacy gap should lessen, according to a survey conducted by The TIAA Institute-GFLEC Personal Finance Index. The financial literacy gap is relative to the general population and U.S.-born Hispanics should have greater financial literacy than foreign-born Hispanics. The survey also found that financial literacy programs that separately address U.S.-born and foreign-born Hispanics are likely to experience better results for both groups.
About: Consolidated Credit has helped over 10 million people over the last 27 years overcome debt and financial challenges. Their mission is to assist families throughout the United States to end financial crises and solve money management issues through education and counseling.
SOURCE Consolidated Credit
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