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How to Get Free Credit Counseling in New Mexico

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In a Nutshell

Getting free credit counseling in New Mexico is simple. Just follow these five steps.

Written by the Upsolve Team
Updated December 10, 2019

An increasing number of Americans are now drowning in debt. People often get into debt to pay for prescription drugs, groceries, and major home repairs. If you have unmanageable debt, you can turn to a New Mexico credit counselor for help and get debt free. Credit counseling in New Mexico can help you tackle acute problems and manage your credit appropriately and responsibly, with the use of various specialized repayment strategies. According to the Consumer Financial Protection Bureau, people who are having a difficult time paying their debts, such as credit card debt or student loans, can benefit considerably from credit counseling.

Credit counseling in New Mexico is usually done by a reliable New Mexico non-profit organization with experienced counselors trained and certified in money and debt management, budgeting, housing counseling, and consumer credit. Many credit counseling agencies in New Mexico register as non-profits with the IRS. This gives these agencies substantial tax benefits.  Most people, unfortunately, tend to equate non-profit with charity, but that isn't true. So, do not let the fact that a New Mexico credit counseling agency is a non-profit mislead you into believing that it’s a charitable organization.

Credit counseling agencies in New Mexico can help you objectively organize all your debts and create a comprehensive plan to repay it. Also, their financial counseling services are designed to set you up for an economically stable life once you have paid off your debt. A New Mexico credit counseling agency will get in touch with your creditors to whom you owe money. They will then negotiate a lower interest rate or an alternate payment schedule that you are comfortable with.

Nonprofit credit counseling agencies in New Mexico will also provide you with financial education and valuable educational materials.

You are an ideal candidate for New Mexico credit counseling services if:

  • you are behind on your credit card payments

  • your unsecured debt (credit card and personal loan) is keeping you up at night

  • you have excessive student loans

  • you’re paying out 20 percent of your monthly salary toward unsecured debt payments

A debt management program is one of the key services provided by New Mexico credit counselors. If you can’t repay your balances on your own, then a New Mexico credit counselor can help you enroll in a debt management program.

How to Get Free Credit Counseling in New Mexico

Getting free credit counseling in New Mexico is simple. Just follow these five steps.

Find New Mexico Nonprofit Credit Counseling Agencies

There are many organizations that run credit counseling scams, preying on overwhelmed people and promising "a clean slate" (usually for a flat, up-front fee). This is why you should not simply settle on the first New Mexico credit counseling agency you come across. Preparation is crucial to finding a dependable New Mexico credit counseling agency. 

Agencies usually fall into one of 2 camps: for-profit and nonprofit. It is better to work with reliable nonprofit credit counseling agencies in New Mexico. There are extremely strict guidelines and limitations when it comes to the fees that nonprofit counseling agencies can charge. On the other hand, for-profit credit counseling agencies in New Mexico have few restrictions on the amount of money that they can charge.

Information to Research before Talking to a New Mexico Credit Counseling Agency

When it comes to choosing a New Mexico credit counseling agency, you should find one that you would like to work with. Be wary of any New Mexico credit counseling agency that only offers one type of assistance to its consumers, like a debt management plan. Free service is not the sole reason to choose a New Mexico credit counseling agency. Wondering why? You will find many counseling agencies in New Mexico that call themselves "non-profit," but often do not behave like one. You should also look for a credit counseling company that is able to help you beyond your current crisis.

If you want to learn more about credit counseling in New Mexico, you should: 

·         Visit the NFCC website

·         Call the NFCC at 1-800-388-2227.

Check with the Better Business Bureau (BBB) to look up any New Mexico credit counseling agency you are considering

The U.S. Department of Justice also has its search tool that helps New Mexico consumers find a reliable credit counseling agency.

Questions to Ask the New Mexico Credit Counselor Before Signing Up

Most New Mexico credit counselors offer their services through local offices, over the phone, or online. Contact multiple New Mexico credit counseling firms so that you can get a clear idea of the type of services they provide. These questions will help simplify the process.

How are your counseling services funded? Nonprofit New Mexico credit counseling companies receive compensation from various sources, such as grants, creditors, and sometimes credit card issuers, in order to fund their services. Although it might seem counterintuitive, note that these relationships with creditors are often a win-win. This is because creditors can benefit from getting their customers to repay their debt, and this source of funding, in turn, helps make the services very affordable for people compared to many for-profit agencies.

Here are some other questions:

  • Is a debt repayment program my only option?

  • How will you secure my confidential information?

  • What if I cannot maintain the agreed-upon payment plan?

What to Expect During Credit Counseling?

A New Mexico credit counseling agency will conduct a 40 to 60-minute interview in order to gather information about your financial situation. The counselors will ask questions about your expenses, income, budget, and assets.

You should have the following information handy for your credit counseling session:

  • Demographic information

  • Basic contact information

  • Information about all your assets and income

  • You will also provide a detailed list of all your expenses, such as rent, groceries and utility expenses

  • Current balances on all your credit cards

The more information you provide, the more your New Mexico credit counselor will be able to help you reach your personal finance goals.

Credit counseling in New Mexico helps you explore several debt repayment strategies, such as debt consolidation, to manage your student loans, and medical bills, to get you back on track. They will also pull and review your credit report. However, do not worry as it won’t affect your credit-worthiness.

You will be able to better manage your finances if you go through New Mexico credit counseling. This will also help you reduce your stress and achieve your financial goals. 

What Happens After Credit Counseling in New Mexico?

A New Mexico credit counselor might suggest a debt consolidation plan or a debt management plan to help you get out of debt faster.

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New Mexico Debt Consolidation

Debt consolidation in New Mexico could be an excellent option for you, especially if you’re likely to be eligible for a lower interest rate. The process rolls your high-interest debts, like credit card bills, into a single, low-interest payment.

Some options to consolidate your debt are:

  • Home equity line of credit (HELOC) or home equity loan

  • Cash-out refinance on the mortgage

  • Credit card balance transfer

New Mexico Debt Management Plan

Through a debt management program, you can send the New Mexico credit counseling firm a lump sum, which the counseling agency then distributes to your creditors. Unfortunately, a debt management plan will not work with all kinds of debt. Secured debts, such as car loans and mortgages, do not qualify for a debt management plan in New Mexico. Also, once you enter into a debt management plan in New Mexico, you will not be able to take out debt in order to buy a car or a home. With a debt management plan, you will 100% of your obligations; so, it’s quite different from eliminating your debts in a bankruptcy. 

New Mexico Bankruptcy

You can also file for New Mexico bankruptcy to get rid of excess debt. By filing bankruptcy in New Mexico, you will have a chance to start anew.

Written By:

The Upsolve Team

Upsolve is fortunate to have a remarkable team of bankruptcy attorneys, as well as finance and consumer rights professionals, as contributing writers to help us keep our content up to date, informative, and helpful to everyone.

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