A new study by The Federal Reserve Bank of Atlanta shows a direct connection between people's "financial literacy," and "numerical abilities," and their liklihood of experiencing the loss of their home through foreclosure.
Unsurprisingly, those who are less financially literate fare worse as homeowners, defaulting at significantly higher rates. The study, conducted between 2006 and 2007, shows they are far more likely to fall behind on mortgage payments.
According to Credit.com, "Those who scored among the highest level for financial literacy were two-thirds less likely than those among the lowest group to experience foreclosure, according to the report. Members of the lowest group spend an average of nearly 25 percent of their time in delinquency, compared to 12 percent for the highest group."
The Obama administration has declared April National Financial Literacy Month in an effort to increase Americans' money management skills.
For the latest real estate foreclosure news and information, please visit www.USHUD.com, America's only free foreclosure resource.
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