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The Reason Hispanics and Latinos are taking out Loans

Sunday, November 30th, 2008    Subscribe To Our Feed

Banks are marketing to Latinos and Hispanics communities. Little do they know that they are the same people.

The one thing that remains the same is the amount of loans that Hispanics take out. The biggest reason is Hispanics have bad credit. Think about it, for years and still today Hispanics do business with cash and not with loans.

Recently more and more Hispanic and Latino individuals are taking out more loans. The reason for this is simple; they are sold a product that they think they can afford.

For Anglos the downfall is taking out enormous mortgage loans. That is not the same downfall for Hispanics. Hispanics fall into the trap of making monthly payments on stuff they want right away.

Every weekend you will see Hispanics going to the store and buying stuff on store credit. Anything from electronic store to furniture stores they walk out thinking they could what they just put on credit.

So all across the United States, Latinos continue to maximize what they can afford by making minimum payments to all of their lenders.

But only a generation ago, Hispanics would have never thought of taking out a loan. Hispanics used to always pay with cash for two reason. 1. Some knew how to manage their money. 2. They could not put their cash in the bank since they were illegal so they kept the money under a mattress so to speak but sometimes that was the truth.

So what happens, you have these easy loan companies that open up shop in Latino communities and now this is the way that Latinos learn to manage their money.

Educating Hispanics to get out of debt and stay away from loans is going to be a challenge. If we do not intervene Hispanics are going to owe their lives to all lenders of money.

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