Best Debt Consolidation in Albuquerque, NM

Debts pile up quickly, especially when you encounter unexpected hardships such as a medical emergency, divorce or job loss and have to use your credit card to pay living expenses.

In New Mexico, it can be particularly challenging to make ends meet. The state’s median household income consistently ranks among the lowest in the nation, and nearly 1 in 5 New Mexicans live below the poverty line, according to the U.S. Census Bureau. The average New Mexico resident has close to $8,000 in credit card debt — over $2,000 more than the national average of around $5,000.

If you’re feeling overwhelmed by debt, multiple debt relief companies in Albuquerque can help you get back on track.

If you’re struggling with credit card bills or other forms of unsecured debt, there are several debt relief options available in Albuquerque. Some of the most popular include:

• Credit counseling helps you evaluate your current financial situation as a proactive first step. A trained counselor provides a detailed review of your income, assets and expenses and suggests the best debt solution for your situation. A young couple in Albuquerque might seek credit counseling before buying a home or starting a family.
• Debt consolidation combines multiple debts into one monthly payment every month, typically with a lower interest rate. Most people do this through a personal loan, balance-transfer credit card or bill consolidation company. A graduate of the University of New Mexico who is juggling payments on multiple credit cards might find it easier to consolidate their debts into one manageable monthly payment.
• Debt settlement helps people reduce or eliminate their debt, but it’s not without risks. A debt settlement company negotiates an agreement with your creditors to reduce your outstanding balances in return for a lump-sum payment. However, you suspend all payments during negotiation, so your credit score can take a significant hit. There’s also a chance your creditors won’t accept a settlement. Debt settlement in Albuquerque is a viable alternative to bankruptcy for many people.
• Bankruptcy is a last-resort option when other debt relief options fail. The process discharges your debts or places them in a court-sponsored payment plan. Bankruptcy negatively impacts your credit score, which affects your financial prospects for years. An Albuquerque business owner might consider bankruptcy when faced with foreclosure notices or lawsuits.

Some signs that you would benefit from debt consolidation or debt settlement include:

• You’re overusing your credit cards.
• You’re paying off multiple debts with high-interest rates.
• You’re having trouble saving money or paying cost-of-living expenses after paying your bills.
• You’ve made late payments or missed payments entirely.
• You’ve exceeded the credit limit on your bank or store credit cards.
• You’re receiving notices or calls from collectors.

Debt consolidation companies often offer free counseling sessions where they review your income, expenses and debts and determine which form of debt relief is right for you. The company's advisors help you determine the next step, whether that's applying for a debt consolidation loan or entering the debt settlement process.