Less Wealth Means Less Debt for Latinos, According to New Census - FOX 35 News Orlando

Less Wealth Means Less Debt for Latinos, According to New Census Data

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[By FOX News Latino /FOX 11]

The latest data shows a silver lining to Latinos' lack of wealth.

While Latinos continue to own fewer assets like homes and investments compared to whites, this also means they are incurring in less household debt.

New information released by the U.S. Census on Thursday regarding household wealth and debt paints the reality of the economic situation for many Latinos.

Latinos have fared better than some demographics in terms of wealth, but fallen sharply behind others.

In the past decade, the value of assets owned by Latino households has increased by $917. This is clearly more than the $148 increase in the African American group but far less than the jump seen among Caucasians — a whopping $30,821 median increase, according to the Census Bureau.

The large disparity in wealth distribution stems from the fact that less Latinos own homes, compared to their Caucasian counterparts. They also have a large, growing young population that is less economically established.

"Because of the lower incomes, when you look at the average numbers home ownership is the issue," Mayra Rodriguez Valladares, a financial consultant with MRV Associates, told Fox News Latino.

"And when you add in things like bonds and stock ownership, the number for asset ownership is incredibly low."

As Rodriguez Valladares points out, among Latinos "there's not a lot of trust in the banking system and investments."

On the bright side, Latinos are faring better than the average American when it comes to getting themselves into debt.

In 2011, just 63 percent of Latino households held some form of debt compared to the national average of 69 percent.

Latinos' debt is also almost $30,000 less than the national average.



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