Latino households carry the highest credit card balances. According to the NAACP, 79 percent of Latinos carry credit card debt compared to 54 percent of Caucasian households. Prioritizing debt payments and tracking spending are two of the top financial improvement strategies Consolidated Credit Counseling Services, Inc. recommends to consumers.
Howard Dvorkin, CPA and founder of Consolidated Credit is concerned about rising debt balances among the Latino community. "Consumers must be cautious when setting financial goals, otherwise they may be impossible to maintain. Latino consumers need to focus on paying down credit card debt and improving their financial health," said Dvorkin.
The National Council of La Raza (NCLR), the largest national Hispanic civil rights and advocacy organization in the U.S., released a report which found that unfair and abusive credit card policies and practices trap Latinos in a cycle of debt. The Latino Credit Card Use: Debt Trap or Ticket to Prosperity? report examined credit card industry practices and revealed Latinos need greater access to affordable credit.
"We need to work on teaching the Hispanic community how to successfully manage debt while improving their credit histories," said Dvorkin.
Howard Dvorkin recommends the following financial improvement tips to Latino consumers: