Problem With Credit: African American Debt Is Increasing Faster Than Income
As a nation standing on credit card debt, American minorities are no exception. When minority families have to spend a larger percentage of income on credit card debt, they can develop huge credit card problems while their lenders prosper.
A survey of consumer finance was done by the Federal Reserve to assess wealth distribution in the U.S. from 2002-2004. Minority families were found to add on debt at a rate that substantially exceeds their increase in income, thus decreasing the overall wealth-building potential of every dollar earned. Minority families also ran up debts double that of their white counterparts. Not that white households lacked credit problems, with a debt load higher in dollar terms than minority families, but their percentage debt increases didn't exceed their average income growth level.
Read more
As a nation standing on credit card debt, American minorities are no exception. When minority families have to spend a larger percentage of income on credit card debt, they can develop huge credit card problems while their lenders prosper.
A survey of consumer finance was done by the Federal Reserve to assess wealth distribution in the U.S. from 2002-2004. Minority families were found to add on debt at a rate that substantially exceeds their increase in income, thus decreasing the overall wealth-building potential of every dollar earned. Minority families also ran up debts double that of their white counterparts. Not that white households lacked credit problems, with a debt load higher in dollar terms than minority families, but their percentage debt increases didn't exceed their average income growth level.
Read more