Culture

U.S. Hispanics use Credit Card Wisely During the Pandemic, Debt.com En Espanol Survey Shows

Hispanics living in the U.S. and Puerto Rico reduced their credit card use and saved more during the height of the pandemic.

FORT LAUDERDALE, FL – (NOTICIAS NEWSWIRE) — The Spanish language survey by Debt.com en Español surveyed nearly 200 Hispanics to learn about their credit card debt. The survey findings highlight financial lessons learned by Latinos during the pandemic.

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The poll is a great segue into Financial Literacy Month, which began last April 1. Throughout the month of April, organizations across the country conduct a variety of events and carry out initiatives designed to improve financial literacy and to promote financial well-being.

Financial Literacy Month has many facets, but the main points are simple: We need to teach both children and adults about achieving and maintaining freedom from debt and being financially stable.

— Howard Dvorkin, CPA and Chairman of Debt.com.

While the pandemic shook the personal finances of millions of people, Hispanics seem to have learned the lesson of saving for an uncertain future and not overspending.

Sixty-nine percent of respondents say they learned how much credit cards really cost by looking at interest rates and fees. The respondents added that they now not only look for low-interest rate cards but also cut back on their use and pay more than the minimum payment each month.

Those living in the U.S. and Puerto Rico are struggling with record levels of credit card debt, currently at over $1 trillion. Average interest rates on that debt hover around 16%.

The survey found that 81% of respondents report using only one or two cards, 35% report having less than $500 in debt, and the vast majority (65%) report having $501 or more charged to their credit cards.

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What do U.S. Hispanics use credit cards for?

The top five common uses of credit cards for Hispanics are monthly household purchases (55%), gasoline (51%), and emergencies (43%). This is followed by spending on restaurant bills, airfare, hotels, and travel costs.

And while the vast majority (72%) have never used a credit card to transfer balances or consolidate debt, more than 55% of respondents have hit their credit card limit over the past year.

When asked which of the credit card companies had the best customer service, Capital One came out on top at 32%, followed by Chase at 17%.

An area of opportunity for Hispanics may be using credit monitoring services. More than 66% of respondents admitted to never having used a credit monitoring service. Almost half of the respondents (49%) knew that they can receive an annual credit report for free guaranteed by federal law.

For survey results, and to learn more about financial trends, visit Debt.com’s Financial Research Section.

About: Debt.com is the consumer website where people can find help with credit card debt, student loan debt, tax debt, credit repair, bankruptcy, and more. Debt.com works with vetted and certified providers that give the best advice and solutions for consumers ‘when life happens.’

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