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Credit Card Debt Solution By Brynn Grimley - Scripps Howard Foundation WireLanguage barriers, minimal education and a lack of trust in financial institutions among the American Latino population has caused a substantial wealth gap between households.

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A demand curve is negatively sloping meaning that as demand increases, the price of a given product falls and suppliers enjoy economies of scale. The demand for credit is no exception. Households demanding small amounts of credit for short periods pay higher rates than households with high loan demand. High income households demanding larger quantities of credit enjoy a quantity discount while lower income households will pay a premium (Morgan, p.8, 2007).

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Credit Solution Of America November 20, 2003 (SHFW) Washington DC - Language barriers, minimal education and a lack of trust in financial institutions among the American Latino population has caused a substantial wealth gap between Hispanic American households and other American households, experts say.

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Credit Officials from the Consumer Federation of America, Freddie Mac and several Hispanic organizations discussed reasons for the lack of household wealth and their solutions to close the gap at a press conference Monday."There are a number of factors that account for wealth and savings gaps," said Stephen Brobeck, executive director of CFA. "A lot of the population is younger and has not had as much time to save money. ... They have narrow income-learning opportunities because they don't speak English, they earn below average income and they are less likely to be home owners."

Bad Credit Debt Consolidation A 2001 Federal Reserve Board Survey of Consumer Finance found the median Hispanic American household net wealth was $11,450. The median American household net wealth was $86,100.

Credit Card Solution Although the Hispanic American household wealth has increased by 66 percent from 1989 to 2001, officials are still worried the gap is too large.

Credit Union "The news that was given was not good," said Manuel Mirabal, National Puerto Rican Coalition president, "but it confirms what we're working toward."

Bad Credit Credit Card Mirabal, also CEO and chair of the National Hispanic Leadership Agenda, said that although Latinos play a major role in the labor force they mainly earn minimum wage.

Credit Card Processing "The Latino community participates as a labor force," said Mirabal. "They are the highest across the nation ... unfortunately many are working poor."Many spend their paychecks as they get them on rent and other necessities. When emergencies arise, they go to fast cash lenders that charge high interest rates.He also said that those who do make enough money aren't saving because they are sending the money home to family in their native countries. Brobeck said Hispanic Americans are sending "more than $10 billion a year to those outside the U.S."

Apply Online For Credit Card "The challenge for the Latino community is clear when you look at the statistics," said Brent Wilkes, executive director for the League of United Latin American Citizens. "The Hispanic community is sending money back to families, so it shows" they can save money.CFA and Freddie Mac developed America Saves, a program to educate the Hispanic community about how to make the most of their money.

Bad Credit Car Loan BET.com and CFA have also tailored the program for the African-American community, where they have seen success in helping families find ways to build household wealth through home ownership.

Credit Solution Corp The program they designed for the Hispanic community is set to educate families about saving money by opening checking and savings accounts and to offer a bilingual program through familiar institutions that have gained the community's trust, such as LULAC.

Credit Repair "There's a lot of distrust," said Anibal Olague, border field officer for the Texas Department of Housing and Community Affairs. "They don't have access to financial institutions. ... They are not used to traditional investment ways."

Bad Credit Loan Mortgage Olague is also the coordinator of a new program, El Paso Saves, which has the same goals as America Saves."It's been challenging to get everyone together," said Olague, "CFA has met those needs. We have provided access to counselors and partnered with community organizations, which are who the people trust. ... It's a process of educating them at the end of six to eight months to understand saving."

Solution Credit Counseling Brobeck said the groups are still trying to find the most effective medium.

Credit Score "We need to understand the Latino community as a whole is a growing population in this country," said Mirabal. "The lower the income group, the less ability they have to function in English. ... There has to be some work done at the grass roots level."

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