Monday, April 15, 2024

The Economic Crisis & Hispanics

As the country undergoes the worst economic crisis in history, like the rest of Americans; Latinos are being affected.

In a study conducted by the Pew Hispanic Center of 1,540 Latino adults, nine percent of Latino homeowners said they missed a mortgage payment or were unable to make a full payment, and three percent say they received a foreclosure notice this past year.  Also sixty-three percent of Latinos had foreclosures occur in their own neighborhood, and 36% say they were worried about their own home being foreclosed. Fifty-three percent of foreign-born Latinos are worried about foreclosures as well.

The economic crisis has not only affected Latinos in the United States. It has also had a global impact on Latin America.  Hispanic immigrants have lowered sending remittances to family abroad. More than 71% say they have had to send less money in 2008 than in years past.

As the rest of the world feels the credit crunch, Latinos are feeling uneasy about their personal finances. Seventy-six percent  of Latinos don’t view their financial situations in a positive light. More than 76% of Latinos and 84% of foreign-born Latinos say their finances are in either fair or poor shape, compared to 63% of the general U.S. population who say the same thing.

In an effort to curb spending, many Latinos are changing their spending habits, whether it be less shopping or less dining out. A reported 71% of Latinos say they cut back on spending and eating out. In addition, 67%planned to limit holiday spending this season. 28% of Latinos say they helped a family member or friend with a loan.

With Obama’s reported $ 776 stimulus plan in the hands of Congress, time will tell if the economic crisis and consumer confidence will improve; and if Latinos will continued to be affected.

Hispanic Pew Center