Over half of Latinos in Arizona, Texas and California say they are worried about not being able to pay next month's rent or mortgage, according to a new survey conducted by BSP Research on behalf of the Latino civil rights and advocacy organization UnidosUS.
The study, "titled Latino Banking and Financial Health Survey," sought to better understand the financial situation of the 62 million Latinos living in the United States.
Researchers surveyed 1,200 Latinos on economic issues such as their use of bank accounts, junk fees, and access to credit, as well as other financial health measures, including their saving levels, retirement savings, health care spending, and debt.
Among the most pressing concerns, 54 percent of respondents in Arizona and California said they were afraid of not being able to make their rent or mortgage payments, while 49 percent of respondents in Texas felt that way, UnidosUS specified during a briefing on the study on Tuesday.
These rates are higher among young Latinos. The findings show that about two-thirds (66 percent) of young Latinos aged 25-39 are concerned about next month's rent or mortgage payment, compared to 44 percent of those aged 40 and over.
Debt is also higher among younger Latinos. 59 percent of all respondents have $100,000 or more in mortgage debt, but that figure is 53 percent for those 40 and older and 81 percent for those between 25 and 39.
The study highlighted that U.S. Latinos' economic output of $3.2 trillion would be the fifth largest gross domestic product (GDP) in the world if they were an independent country, and that Latino economic output in the U.S. has grown by 250 percent over the past decade.
"However, this output doesn't mean that all Latinos are thriving economically. On the contrary, Latinos are experiencing mixed economic results," the document says.
The good news? Unemployment is at near-historic lows, and real wages are rising even as inflation continues to decline.
The bad news? "The survey shows that too many families continue to face economic difficulties," UnidosUS stated.
The survey also found that a top economic concern for Latinos is lack of income, followed by rising housing costs. About 25% of respondents cited the inflated cost of housing as their top concern.
Medical care is another top issue. About 47 percent of respondents have medical debt, and 11% owe more than $2,500 in medical debt. In addition, many Latinos are forgoing the medical care they need. For example, 27 percent of Latinos said they didn't get dental services in 2023 because of the cost.
Asked about their savings, most Latinos do not have $400 for an emergency. About 62% of respondents reported having $400 or less saved in case of an emergency, while 35% do not have any money saved for that purpose.
Many Latinos are struggling to make payments on their student loans, according to the survey: 53 percent of Latinos with a student loan have gone into deferment or forbearance with their loan, and 19 percent said their loan went into default.
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