Banks are marketing to Latinos and Hispanics communities. Little do they know that they are the same people.

The one thing that remains the same is the amount of loans that Hispanics take out. The biggest reason is Hispanics have bad credit. Think about it, for years and still today Hispanics do business with cash and not with loans.

Recently more and more Hispanic and Latino individuals are taking out more loans. The reason for this is simple; they are sold a product that they think they can afford.

This is the same for Anglos. Anglos take out huge mortgage loans. The pitfall for Hispanics are the small purchases that make up monthly payments.

Every weekend you will see Hispanics going to the store and buying stuff on store credit. Anything from electronic store to furniture stores they walk out thinking they could what they just put on credit.

So all across the United States, Latinos continue to maximize what they can afford by making minimum payments to all of their lenders.

But only a generation ago, Hispanics would have never thought of taking out a loan. Hispanics used to always pay with cash for two reason. 1. Some knew how to manage their money. 2. They could not put their cash in the bank since they were illegal so they kept the money under a mattress so to speak but sometimes that was the truth.

Now what you see is loan companies coming up because they are marketing to Hispanics again with they monthly payments. Latinos are falling for their methods.

Educating Hispanics to get out of debt and stay away from loans is going to be a challenge. If we do not intervene Hispanics are going to owe their lives to all lenders of money.