While it is true that online shopping offered a lifeline to consumers during the pandemic, for members of the Hispanic community that lifeline could be making it harder to stay afloat, according to a new consumer shopping survey by Consolidated Credit.
The results show that most consumers (64 percent) started shopping online more as a result of the pandemic, and most of those who started shopping more (52 percent) haven’t slowed down. However, when asked if online shopping makes it harder to budget, 56 percent of Hispanic respondents said yes compared to just 40 percent of the general population.
Spanish speakers also report greater difficulties paying off online purchases
Across all ethnic groups, 78 percent of shoppers who use credit cards to make online purchases pay them off in the first billing cycle. Yet for Spanish speakers, 57 percent say they can’t pay off charges that quickly. The Hispanic community is also more likely to use Buy Now Pay Later (BNPL) services. Less than half (46 percent) of the general population has used BNPL, compared with 71 percent of Spanish speakers.
“Online shopping may be convenient, but if you’re living paycheck-to-paycheck, it’s almost certainly going to make it harder to maintain a budget and avoid debt problems,” said Consolidated Credit’s director of education April Lewis-Parks, in a news release. “That’s what we see in these results. We know the Hispanic community was hit harder by the pandemic and these results affirm that as community they may be having a harder time achieving financial stability in today’s economy.”
“Credit card bills drain income needed to cover daily costs in the face record inflation,” Lewis-Parks continued. “Consumers who are struggling to make ends meet need to reach out for help. Nonprofit organizations like Consolidated Credit can help.”
The organization, whose mission is to helping families solve financial crises through education, polled 840 consumers in English and Spanish to ask about their online shopping habits.