Originally published: August 18, 2008
Source: PRNewswire
A new study shows that nearly one-third of low-to-moderate income Americans are either unbanked (holding no basic bank account) or underbanked (having a basic bank account and yet relying on less sophisticated methods for everyday transactions such as check-cashing). This problem is particularly acute for low-to-moderate income Hispanics, 53% percent of whom are either unbanked or underbanked. Only 23% of non-Hispanics fall into this category.
The latest Americanos Poll(R), a collaboration between market research firm Encuesta, Inc. and ACCION USA, sheds light on the financial attitude and behavior of low-to-moderate income individuals in the United States, with special focus on the habits of Hispanics. The survey finds that:
- Low-to-moderate income Americans struggle to use credit wisely;
- Many acquire personal debt for everyday living expenses such as for bills (15%) or food or housing (11%);
- 15% turn to credit cards for cash advances;
- Only 45% are "very" familiar with how to build or manage their credit. Only 36% of Hispanics are "very" familiar with how to build or manage credit, compared to 46% of non-Hispanics.