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Financial Literacy

Posted on March 21st, 2008 in Uncategorized by admin

Overview:

According to the National Endowment for Financial Education, a large percentage of people of all ages, incomes, and education levels lack the basic financial knowledge and skills to ensure long-term stability for themselves and their families. An explosion of in the number of credit product choices has made it even more difficult for families to make good decisions in using credit. This has also resulted in a growing number of families experiencing financial hardship because of high debt levels.

The Economic Development Committee of the Texas NAACP has developed this web page to provide you with access to resources that can assist you with improving your financial literacy

Financial Literacy Resources:

  • Consumer Credit Counseling Services of Dallaswww.cccs.net or call 512/447-0711

Some important facts on African Americans and credit

· African Americans’ applications for conventional mortgage loans in 2005 were denied at nearly twice the rate of denials for all other applicants in the Austin metropolitan (26% versus 14%) according to data from the 2005 HMDA report

· African Americans’ applications for home improvement loans in 2005 were denied at a significantly higher rate than the rate of denials for all other applicants in the Austin metropolitan (64% versus 46%) according to data from the 2005 HMDA report

· African Americans in the Austin metropolitan area had the 9th highest percentage (63%) of subprime refinance loans in the nation out of 154 metropolitan areas according to a study by the Center for Community Change

· African-Americans were more likely to receive higher-rate home purchase and refinance loans than all other applicants according to a study by The Center for Responsible Lending

· African American households were shown to spend larger percentages of their incomes paying credit card and other high interest rate debt than other households according to a briefing paper, Costly Credit: African Americans and Latinos in Debt, published in Demos

· A study by JumpStart Personal Finanical Literacy Coalition shows that while no racial group is financially literate, African-American students are, on average, only about 80 percent as literate as their white student counterparts

  • Across the country, African-Americans received 16.8 percent of the conventional high-cost loans but only 5.5 percent of the conventional market-rate loans during 2005 according to a study by the National Community Reinvestment Coalition

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