A recent survey conducted by Consolidated Credit has brought to light the financial vulnerabilities Hispanic families face due to credit card debt. With over 90% of Hispanic participants owning at least one credit card, the survey underscores a troubling trend of over-indebtedness, exacerbated by a lack of financial literacy. Findings indicate that 42% of respondents hold between two and three cards, and 28% possess four to five, raising concerns about financial stability.
The timing of these findings is critical, as the Federal Reserve Bank of New York reports U.S. credit card debt hitting $1.18 trillion in the first quarter of 2025. This not only reflects changing consumption patterns but also highlights a significant gap in financial education. Alarmingly, 61% of survey participants admitted to learning how to manage credit cards only after accumulating debt, with 51% feeling that credit card use has negatively affected their finances.
Despite these challenges, the survey also identifies what Hispanic consumers prioritize in credit cards: low or 0% interest rates, no annual fees, rewards, and no international fees. However, misuse, such as exceeding 30% of available credit, can harm credit scores and restrict access to essential services. Consolidated Credit advocates for responsible credit use and offers free financial education and debt management programs to help families achieve financial stability.
