Debt Settlement in New Mexico
Explore Your Debt Relief Options
Below is a brief description of some of the more commonly used methods for relieving debt.
1. Make Minimum Monthly Payments
While it may feel like paying only the minimum might save you money repaying on a debt, taking this route extends the time it takes to pay off the debt and increases the amount that has to be paid in interest in the long term. Paying only the minimum is possibly the worst strategy one can employ when it comes to paying off debts.
2. Credit Counseling or Debt Management Programs
Credit counseling is a debt management program in which a single monthly payment is made to a credit counseling agency, and they distribute the funds to creditors on behalf of the debtor. Ideally, the counseling agency can secure lower interest rates so you can pay off the debt faster during the process. While many of these programs are offered for free, you still end up paying back the entire debt amount on top of any interest that has accrued. The downside with debt management is that they tend to take between 3-5 years to complete and have low completion rates in New Mexico.
3. Debt Consolidation Cards or Loans
With debt consolidation, you take out a large loan or credit card account that has a low rate of interest and use that money to pay off your other, higher-interest unsecured debts. This can consolidate the number of payments being made every month into a single one and, theoretically, lower the amount being paid out in interest at the same time. The disadvantage with debt consolidation is that these types of loans can be hard to qualify for with anything less than great credit and the low-interest rate can disappear if the debt is not repaid within the promotional window of the loan.
4. Debt Settlement or Debt Negotiation in New Mexico
Debt settlement differs from the first two options in that it can reduce the overall balance of debt in addition to lowering interest rates. Because much less is owed on the principal balance in the end, debt settlement can generally be a faster and less costly debt relief option than either debt counseling or debt consolidation.
5. Declaring Bankruptcy
For consumers who cannot meet their debt obligations and their creditors are no longer willing to negotiate a settlement, declaring bankruptcy may be inevitable. Formally declaring bankruptcy stops the creditor collection process immediately, and the debtor no longer owes some or all their unsecured debt, but their ability to borrow is significantly hindered for years after.
Learn About New Mexico Debt Settlement
How Does Debt Settlement Work?
Debt Settlement is a process of negotiating with creditors to work out a repayment deal for less than the principal balance owed on your unsecured personal debt accounts. This is different from Debt Consolidation and Credit Counseling which only work to reduce the interest and do not affect the total balance. By reducing the principal debt balance by up to 50%, Debt Settlement can provide a much faster method of relieving your debt in New Mexico.
Most creditors are willing to accept a reduced payment to close out an account because they see this as a better alternative to losing the entire debt if the debtor files for bankruptcy.
You can include the following types of debt in a New Era Debt Settlement Program:
- Credit cards
- Department store cards
- Private student loans in default
- Personal lines of credit
- Signature loans
- Old repossessions
- Other unsecured debts
- Old judgments
The following types of debt do not qualify:
- Home mortgages
- Credit Union debts
- Federal student loans
- Car loans
- Medical / Hospital bills
- Other secured debts
New Mexico Debt Settlement Services by City
- Albuquerque Debt Settlement
- Las Cruces Debt Settlement
- Rio Rancho Debt Settlement
- Santa Fe Debt Settlement
- Roswell Debt Settlement
- Farmington Debt Settlement
- Clovis Debt Settlement
- Hobbs Debt Settlement
- Alamogordo Debt Settlement
- Carlsbad Debt Settlement
Be sure to check with your New Mexico debt counselor for a more exhaustive list.
Is Debt Settlement Right for Your Finances?
Do you have a legitimate financial hardship condition?
Most consumer debt in New Mexico is caused by a loss of income, medical costs, or a divorce/separation. Each of these constitutes a legitimate financial hardship that can create serious strain on a household budget staying above water.
If you are over your head due to a hardship circumstance, and you’d prefer to work things out with your creditors rather than declare bankruptcy in New Mexico, then Debt Settlement can provide an honest and ethical debt relief alternative.
Are you committed to getting out from under your debt?
Debt Settlement is not a “free lunch” system for those who simply want to avoid paying their bills. It is an aggressive approach to debt relief; and, as such, it can present an occasional challenge for those involved. Even when the road gets a little bumpy, your level of commitment to staying the course is often the biggest factor in determining success in a settlement program. For those who are willing to see it through until the end, debt settlement can get you out of financial difficulties at a faster rate and for a lower cost than nearly every other debt relief option in New Mexico.
Are your debts primarily from credit cards?
Most types of unsecured debt can be negotiated through debt settlement including personal credit lines, financing contracts, signature loans, repossession deficiencies, department store cards, miscellaneous bills, and more. However, the biggest discounts from settlement are often obtained from outstanding credit card debts; so, if a large percentage of your total debt is from credit card accounts, then you can usually anticipate good results from trying to settle.
Can I Trust New Era?
You can pick the good guys from the bad guys by asking these 14 important questions of them. It is also always a great idea to into the company’s average rating and complaint history with the Better Business Bureau to see what other New Mexico consumers’ experiences have been like working with that firm.
New Era Debt Solutions is rated A+ with the Better Business Bureau and is proud to have been helping New Mexico consumers clear their names of debt for over 20 years. We’ve settled more than $250,000,000 in debt for our thousands of clients from all across America. Visit our Testimonials page to see what past clients have had to say about our settlement programs.
Here’s What Makes New Era Unique:
No Upfront Fees. A Debt Settlement company should not charge you any fees until or unless they settle your debt. As per an FTC ruling effective October 27, 2010, this is the only legal way to charge for a debt settlement service.
- End-to-end service. Some “debt settlement” companies you may talk with are only sales groups who will sell or pass your account off to a different company to handle your settlement. This means your financial data is being passed around and the salesperson has no control over – or interest in – how your debt is settled. Look for a company such as New Era who will handle your program from beginning to end.
- Experience. With the crash of the sub-prime mortgage industry in New Mexico many new debt settlement companies headed by prior mortgage industry people suddenly popped up. These companies do not have nearly the experience or the relationships that lead to your best settlement deals. Look for companies who have been around long enough to amass a solid settlement track record. For example, New Era has been settling debts since 1999, and we’ve settled more than $250,000,000 in debt for our clients.
- No “add-on” fees. Some debt settlement companies try to get around the law by charging administrative fees, signing fees, consultation fees, and various other excuses to get money from you. Good guy debt settlement companies such as New Era charge only a settlement fee, which you do not pay until your debt is settled.
New Era negotiators are experts at getting you some awesome deals in New Mexico, but the offers don’t last forever. The most successful debt settlement clients in New Mexico are ready and willing to respond immediately. Consumers in New Mexico can get a FREE analysis of their debt. We will show you how much time and money you can save. Contact New Era Debt Solutions to get started.