Do immigrants do not borrow?
US debt culture is so entrenched that some teens get credit cards, even before learning to drive.
This situation is very different from the way he was raised Attendant, design student 19 years old, who lives in the Bronx. Salgado, whose family immigrated to the US from Mexico 20 years ago, said his "workers" parents never had bank accounts, always paid the rent on time, and although they could not qualify for a credit or debit card, never wanted to have one.
"No credit. None of that," Salgado said. "It has been always effective."
Usually, many immigrants do not trust credit and tend to be more economical and more disciplined with their finances than Americans, especially in the early years of his life in the US While these habits have helped them stay out of the mortgage and financial crisis, in addition to the problems faced by many Americans in recent years have also brought a downside leaving some immigrants "unbanked" and unable to establish a credit history when applying for mortgages or rent houses.
With interest rates at historic lows, government officials hope to stimulate the US economy encouraging people to borrow money and make big purchases like houses, cars or electronics. Many financial, and even the immigrants, advisers say that no matter how low rates come to be, it is unlikely that most immigrants assume the debt.
Less debt, less poverty
However, these instincts can help immigrants move up the economic ladder. According to an analysis by the Census Bureau 2005-2007, immigrants have slightly lowered poverty rates than US-born New Yorkers According to a report by the Comptroller's Office in the State of New York, the 10 neighborhoods with the highest concentration of foreign residents had higher economic growth than the rest of New York between 2000 and 2007. Furthermore, the same report found that the number of immigrants who were homeowners doubled between 1991 and 2008 and increased by almost 50 percent between 1999 and 2008.
Many immigrants do not have credit cards and therefore tend to pay all cash, said Lauren Lyons Cole, a certified financial planner. "When you live only using cash, tend to have a lot on your savings account to make sure you're not going to run out of money," said Cole, who works with customers in South America, Germany, Latvia, Russia , China, Taiwan and some Caribbean countries. "That's a great starting point for saving money, that way you can save more and more."
Cole pointed to the situation of a Japanese woman who came to the US to study at the university, which did not build any credit card debt, and when he started working as a teacher continued to manage your financial life in the same way. Unlike Americans, who on average save only 5 percent of their income, Cole assure you that the Japanese woman saved from 20 to 30 percent of their income, enough money to buy a property at the age of 30 years.
"In my experience, immigrants and the children of the first generation tend to accumulate wealth much faster than those in families who have lived in the US for longer," Cole said.
Good for business
Cole explained that immigrants are willing to tolerate a lower level of US debt in order to reach your savings goals life. "I often impressed to see people who are able to save 25 percent, 30 percent or up to a third of their income," Cole said. "And I think I tend to see such rates more likely savings immigrants." He added: "They are more likely to be entrepreneurs and take risks."
The Small Business Administration US (United States Business Administration, USBA, according to its acronym in English, http://www.sba.gov/) found that immigrants in the US are nearly 30 percent more likely to start a business than nonimmigrants.
Marcos Nagawiecki, businessman 60 years old, Polish-Ukrainian origin, emigrated at the age of 36, and started his own business two years later. As president of a real estate company in Brooklyn, said he has noticed that Polish and Ukrainian immigrants avoid asking for bank loans, prefer to borrow from the community, or save your money "under the pillow" as is traditional in Eastern Europe .
When Nagawiecki need money, prefer to borrow from their friends than to a bank. "I ask my friend to lend me $ 25,000, and the next day brings me cash," he said.
"It's a mentality," he said. "old generation Polish immigrants not believe in credit."
Credit Myths
Chris Dlugozima, director of consumer credit certificate in debt solutions for the organization nonprofit GreenPath said that saving cash is typical of immigrants from countries where banks have failed and people have lost their money.
That's why "under the pillow" for them is a safe place to put your money in a bank account, which is not necessarily applicable to the banking system in the US .. Dlugozima explains that in the US ., provided the bank account is insured by the Federal Deposit Insurance Corporation (FDIC, according to its acronym in English), the first $ 250,000 are "safe and sound" even if the bank goes bankrupt.
"But when you keep the money in a house under the mattress or something," he said, "if lost or stolen - until I get there."
Some immigrants believe that their first encounter with the American system of credit is a negative experience. Bilyana Tosic-Petino, Yugoslavian immigrant, said he took a loan of $ 10,000 to start a jewelry business handmade, shortly after his arrival in the US 13 years.
But Tosic-Petino, 40, did not understand how to work the local market, and has long been investing borrowed money from a store that had no sales.
"Money is a wonderful thing, but it can get to dominate," he said. It took four years to pay off their loans. Six years ago began a new jewelry company based in Brooklyn, feathers Falcon, which is still in business, but she says she is still cautious about lending.
Contrary to the expectations of many immigrants, however, completely neglecting the debt may limit your ability to thrive in the US Not having debt or credit does not mean you have good credit, said Kristen Euretig, certified financial planner. Euretig works for Brooklyn Cooperative Federal Credit Union, where he teaches personal finance in English and Spanish.
When people say "my credit is clean, I have nothing," most American homeowners think they do not have a credit history is like to have very bad credit. Credit history serves as proof that a person can pay your bills on time, if a customer can not demonstrate this paper, the owner has reason to doubt his ability to pay the rent.
Bad credit, while inviting a lot of misconceptions. Euretig that a young client told him I thought I had bad credit because he always denied requesting loans.
"The problem was that just never had established his credit," he said.
For the first generation of Americans learn to navigate the credit system can be a challenge when their parents recommend them at all costs avoid debts. Herman Hernandez, 48, owner of Greenpoint Toy Center, said her parents, who moved here from Puerto Rico, had no debt and taught him to "live within their budget."
"If you earn a dollar, must spend 50 cents and 50 cents store," Hernandez said. "That's what I believe." In his 20s, Hernández scored his first loan to buy a car, and a few years later took out a mortgage. As his family had no experience with credit, Herman learned to manage debt on their own, making sure your credit score remained above 700 points.
To buy your business eight years ago, Hernandez took the equity in your home, and managed to repay the loan in five years. His foray into the American credit system has paid off, Hernandez said. "Compared to what my parents had, I have two cars, a house, and to provide for my children," he said. "To some extent, I am living the American dream."
But Euretig said Hernandez's positive experience with debt is an exception and not the rule. During his career he has seen Americans in one of two extremes. Some avoid the debt in full and complete "unbanked and underbanked" he said. While "on the other end extends and thrown overboard in debt."
This situation is very different from the way he was raised Attendant, design student 19 years old, who lives in the Bronx. Salgado, whose family immigrated to the US from Mexico 20 years ago, said his "workers" parents never had bank accounts, always paid the rent on time, and although they could not qualify for a credit or debit card, never wanted to have one.
"No credit. None of that," Salgado said. "It has been always effective."
Usually, many immigrants do not trust credit and tend to be more economical and more disciplined with their finances than Americans, especially in the early years of his life in the US While these habits have helped them stay out of the mortgage and financial crisis, in addition to the problems faced by many Americans in recent years have also brought a downside leaving some immigrants "unbanked" and unable to establish a credit history when applying for mortgages or rent houses.
With interest rates at historic lows, government officials hope to stimulate the US economy encouraging people to borrow money and make big purchases like houses, cars or electronics. Many financial, and even the immigrants, advisers say that no matter how low rates come to be, it is unlikely that most immigrants assume the debt.
Less debt, less poverty
However, these instincts can help immigrants move up the economic ladder. According to an analysis by the Census Bureau 2005-2007, immigrants have slightly lowered poverty rates than US-born New Yorkers According to a report by the Comptroller's Office in the State of New York, the 10 neighborhoods with the highest concentration of foreign residents had higher economic growth than the rest of New York between 2000 and 2007. Furthermore, the same report found that the number of immigrants who were homeowners doubled between 1991 and 2008 and increased by almost 50 percent between 1999 and 2008.
Many immigrants do not have credit cards and therefore tend to pay all cash, said Lauren Lyons Cole, a certified financial planner. "When you live only using cash, tend to have a lot on your savings account to make sure you're not going to run out of money," said Cole, who works with customers in South America, Germany, Latvia, Russia , China, Taiwan and some Caribbean countries. "That's a great starting point for saving money, that way you can save more and more."
Cole pointed to the situation of a Japanese woman who came to the US to study at the university, which did not build any credit card debt, and when he started working as a teacher continued to manage your financial life in the same way. Unlike Americans, who on average save only 5 percent of their income, Cole assure you that the Japanese woman saved from 20 to 30 percent of their income, enough money to buy a property at the age of 30 years.
"In my experience, immigrants and the children of the first generation tend to accumulate wealth much faster than those in families who have lived in the US for longer," Cole said.
Good for business
Cole explained that immigrants are willing to tolerate a lower level of US debt in order to reach your savings goals life. "I often impressed to see people who are able to save 25 percent, 30 percent or up to a third of their income," Cole said. "And I think I tend to see such rates more likely savings immigrants." He added: "They are more likely to be entrepreneurs and take risks."
The Small Business Administration US (United States Business Administration, USBA, according to its acronym in English, http://www.sba.gov/) found that immigrants in the US are nearly 30 percent more likely to start a business than nonimmigrants.
Marcos Nagawiecki, businessman 60 years old, Polish-Ukrainian origin, emigrated at the age of 36, and started his own business two years later. As president of a real estate company in Brooklyn, said he has noticed that Polish and Ukrainian immigrants avoid asking for bank loans, prefer to borrow from the community, or save your money "under the pillow" as is traditional in Eastern Europe .
When Nagawiecki need money, prefer to borrow from their friends than to a bank. "I ask my friend to lend me $ 25,000, and the next day brings me cash," he said.
"It's a mentality," he said. "old generation Polish immigrants not believe in credit."
Credit Myths
Chris Dlugozima, director of consumer credit certificate in debt solutions for the organization nonprofit GreenPath said that saving cash is typical of immigrants from countries where banks have failed and people have lost their money.
That's why "under the pillow" for them is a safe place to put your money in a bank account, which is not necessarily applicable to the banking system in the US .. Dlugozima explains that in the US ., provided the bank account is insured by the Federal Deposit Insurance Corporation (FDIC, according to its acronym in English), the first $ 250,000 are "safe and sound" even if the bank goes bankrupt.
"But when you keep the money in a house under the mattress or something," he said, "if lost or stolen - until I get there."
Some immigrants believe that their first encounter with the American system of credit is a negative experience. Bilyana Tosic-Petino, Yugoslavian immigrant, said he took a loan of $ 10,000 to start a jewelry business handmade, shortly after his arrival in the US 13 years.
But Tosic-Petino, 40, did not understand how to work the local market, and has long been investing borrowed money from a store that had no sales.
"Money is a wonderful thing, but it can get to dominate," he said. It took four years to pay off their loans. Six years ago began a new jewelry company based in Brooklyn, feathers Falcon, which is still in business, but she says she is still cautious about lending.
Contrary to the expectations of many immigrants, however, completely neglecting the debt may limit your ability to thrive in the US Not having debt or credit does not mean you have good credit, said Kristen Euretig, certified financial planner. Euretig works for Brooklyn Cooperative Federal Credit Union, where he teaches personal finance in English and Spanish.
When people say "my credit is clean, I have nothing," most American homeowners think they do not have a credit history is like to have very bad credit. Credit history serves as proof that a person can pay your bills on time, if a customer can not demonstrate this paper, the owner has reason to doubt his ability to pay the rent.
Bad credit, while inviting a lot of misconceptions. Euretig that a young client told him I thought I had bad credit because he always denied requesting loans.
"The problem was that just never had established his credit," he said.
For the first generation of Americans learn to navigate the credit system can be a challenge when their parents recommend them at all costs avoid debts. Herman Hernandez, 48, owner of Greenpoint Toy Center, said her parents, who moved here from Puerto Rico, had no debt and taught him to "live within their budget."
"If you earn a dollar, must spend 50 cents and 50 cents store," Hernandez said. "That's what I believe." In his 20s, Hernández scored his first loan to buy a car, and a few years later took out a mortgage. As his family had no experience with credit, Herman learned to manage debt on their own, making sure your credit score remained above 700 points.
To buy your business eight years ago, Hernandez took the equity in your home, and managed to repay the loan in five years. His foray into the American credit system has paid off, Hernandez said. "Compared to what my parents had, I have two cars, a house, and to provide for my children," he said. "To some extent, I am living the American dream."
But Euretig said Hernandez's positive experience with debt is an exception and not the rule. During his career he has seen Americans in one of two extremes. Some avoid the debt in full and complete "unbanked and underbanked" he said. While "on the other end extends and thrown overboard in debt."
0 komentar