Consolidated Credit Highlights Misuse of Credit Cards Among Hispanics as a Silent Threat to Their Finances

June 19, 2025 at 16:06 PM EDT

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A recent survey conducted by Consolidated Credit reveals an uncomfortable truth about credit cards: for many Hispanic families, this essential financial tool has become a double-edged sword—when mismanaged, it turns into a silent trap of debt and financial stress.

More Access, More Risk

According to the study, over 90% of Hispanic participants own at least one credit card. Surprisingly, 42% have between two and three cards, and 28% between four and five. Although the Hispanic Community in the U.S. prioritizes eliminating debt in 2025, the level of access to credit, without proper education, significantly increases the risk of over-indebtedness.

In the U.S., total credit card debt reached $1.18 trillion in the first quarter of 2025, according to the Federal Reserve Bank of New York. This trend reflects more than just a pattern of consumption—it highlights a worrying lack of financial literacy: 61% of respondents reported learning how to manage credit cards only after falling into debt.

The Impact Goes Beyond Numbers

The survey found that 51% of participants feel that credit card use has negatively impacted their financial situation, and 14% regret having used them. Alarmingly, 8% stated that their misuse “ruined their lives.”

These figures reveal that beyond unnecessary spending, many Hispanic families rely on credit cards to cover real needs: emergencies, basic living expenses, and maintaining their credit scores.

What Do Hispanics Look for in a Credit Card?

The study shows that when choosing a credit card, the most valued factors are:

Low or 0% interest rate for several months: 72%
No annual fee: 64%
Rewards and travel miles: 54%
No international fees: 18%

However, using more than 30% of available credit can seriously hurt credit scores and make it harder to access loans, housing, or even jobs.

A Problem with a Solution

At Consolidated Credit, we firmly believe that a credit card is neither good nor bad—it all depends on how it’s used. That’s why we offer free financial education, personalized counseling, and debt management programs to help thousands of families regain control of their finances.

If your credit cards have become more of a burden than a tool, you are not alone. Talk to one of our counselors today and learn how we can help you break the cycle of debt.

About Consolidated Credit

Consolidated Credit is one of the leading credit counseling agencies in the United States. Since 1993, it has helped over 10 million people find debt relief and improve their financial well-being. We provide personalized solutions to help consumers get out of debt responsibly, offering financial education and guidance tailored for the Hispanic community.

For more information, visit www.consolidatedcredit.org. For Spanish-language content, visit www.consolidatedcredit.org/es.