Carlos Hernández promised not to use his credit card in 2024 and try to pay off the debts that, at 64 years old, do not allow him to think about retiring peacefully after 30 years working in the United States. He is not the only one burdened by debt, a burden that particularly affects Hispanics.
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“I pay and pay and I don't see the debt going down. “Everything goes into paying the interest,” says the Mexican immigrant, who works in construction and is the father of three children, one still a teenager.
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ensures that The covid-19 pandemic worsened his financial situation and no matter how hard he tried, he has not been able to get out of the spiral of debt..
Hernández is not the only one for whom debts have become a headache. A recent survey by the American Association of Retired Persons (AARP) found that three out of four people over 50 have some type of debt in the United States.
Among the most notable problems is that the majority of Latinos do not have money saved to face an unforeseen event.
AND More than 50% of older adults spend more than half of their monthly income on paying them.
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The survey revealed that 61% of the almost 7,400 adults over 50 interviewed feel that their level of debt “is a problem,” and 16% say it is “a major problem.”
Those who earn incomes less than $40,000 a year are more than twice as likely to say their debt is a major problem compared to those who earn incomes of $75,000 or more.
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The study also found that Debt is more likely to be a problem for women than menand “they are a greater burden for African-American and Hispanic adults than for non-Hispanic white adults,” he details.
Gil Cabrera, spokesperson for the AARP, told EFE that Latinos are “very affected” by their financial obligations.
“Among the most notable problems is that the majority of Latinos do not have money saved to face an unforeseen event. They have to resort to credit to cover a medical emergency or repair their car, and that represents a hole in their finances,” he stressed.
That is the case of the Colombian immigrant Yolanda Rodríguez. “I couldn't go to work for a week because I was sick and I didn't receive pay, and that forced me to borrow money to cover my rent and pay for my medicine in October.”he told EFE.
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Her job, cleaning houses, does not give Rodríguez the benefits of paid sick days or vacations, and every time she has to be absent from her job it represents a hit to her pocket.
That's one of the reasons his credit card debts already total $12,000. “It's difficult,” summarizes the 56-year-old Colombian.
Credit cards represent the most common type of debt in the United States. Among adults age 50 and older who have debt, 59% carry credit card balances each month, the AARP study found.
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“It can take them between ten and fifteen years to pay off that debt. This is a very serious issue that Hispanics should be aware of,” Cabrera warned.
About two in three (68%) adults ages 50 and older who have debt say their debt has hurt their ability to save for retirement.
And eight in ten people who have debt say they have tried to reduce their debt level in the last 12 months; however, relatively few people made a plan or sought information.
Both Hernández and Rodríguez have tried to reduce their expenses to contribute more money to pay their debts, but Both explain that the efforts have not borne much fruit.
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In this regard, Cabrera advises “not to give up.”
“There are online tools and resources available to help people struggling with debt. You have to take advantage of them. It is never too late to learn how to maintain healthy finances,” she pointed out.
EFE
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