A recent survey conducted by Consolidated Credit sheds light on the precarious relationship between Hispanic families and credit cards, revealing a significant risk of over-indebtedness due to lack of financial education. With over 90% of Hispanic participants owning at least one credit card and a substantial portion managing multiple cards, the findings underscore a silent financial crisis. The survey indicates that 61% of respondents only learned to manage credit cards after falling into debt, pointing to a critical gap in financial literacy.
The implications of this trend are profound, not just for individual families but for the broader economy. Total credit card debt in the U.S. has soared to $1.18 trillion in the first quarter of 2025, with many Hispanic families using credit cards to cover essential expenses, thereby exacerbating their financial strain. The emotional toll is equally concerning, with 51% of participants feeling that credit card use has negatively impacted their financial situation, and 8% stating it 'ruined their lives.'
Despite the challenges, the survey also highlights what Hispanic consumers value in credit cards: low or 0% interest rates, no annual fees, and rewards. However, the misuse of credit, such as utilizing more than 30% of available credit, can severely damage credit scores, limiting access to crucial financial products and opportunities.
Consolidated Credit emphasizes that credit cards are not inherently harmful but require responsible use. The organization offers free financial education and debt management programs to help families regain financial stability. This survey not only exposes a critical issue within the Hispanic community but also serves as a call to action for increased financial education and support to prevent further financial distress.
