The Increasing Problem of Household Debt Payment Delinquency of Hispanic Households
Lee, J., Hanna, S.D., & Lindamood, S. (2013). The Increasing Problem of Household Debt Payment Delinquency of Hispanic Households. Paper presented at the Academy of Financial Services conference.
29 Pages Posted: 11 Dec 2017
Date Written: 2013
While all segments of society have been impacted by the economic downturn of the past decade, some groups have suffered more than others. This research finds that Hispanic households were about twice as likely in 2010 to be seriously delinquent on debt payments as in 2004. During the same time span, the delinquency rate among non-Hispanic white households rose only slightly and the rate among non-Hispanic black households decreased slightly. Analyzing the 2010 SCF to examine debt payment problems for four racial and ethnic groups and controlling for income, age, and other factors, this study found that in 2010, among households holding debt, Hispanic households were more likely than non-Hispanic whites to be two months or more late on debt payments. The change in delinquency rates between 2004 and 2010 for all households as well as for debt-holding households was greatest for Hispanic households. Possible reasons are discussed, including economic factors, increased assimilation into American culture, and more aggressive marketing of credit to Hispanic households.
Keywords: credit delinquency, debt payments, racial/ethnic differences, Survey of Consumer Finances
JEL Classification: D12, D14, G21, J15
Suggested Citation: Suggested Citation