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New Mexico’s Charms Hide a Growing Problem with Debt

New Mexico State, also known as the Land of Enchantment, is located in the Southwest and is renowned for its adobe-style homes and desert landscape. It shares the Four Corners region with Utah, Colorado, and Arizona.

An interesting aspect of the state is its reputation as the hot air ballooning capital of the world. Every fall, it hosts a two-week festival dedicated to hot air balloon enthusiasts. Additionally, New Mexico boasts a vibrant food culture dominated by beloved dishes such as enchiladas, tamales, and chiles rellenos, which are adored by both residents and tourists alike.

New Mexico’s Financial Situation

As charming and lovely as the state of New Mexico is, it is common for a New Mexico resident to face financial troubles caused by mounting credit card debt, increased cost of living, and rising taxes. The state ranks among the lowest for per capita income, as few large businesses have set up in the region. The lack of financial resources exacerbates the challenges faced by the community. 

Furthermore, New Mexico state has one of the lowest rates of English speakers, at 63.96%. This combination of factors puts a strain on the state’s residents, making it even more crucial to provide financial assistance and support services.

All of these factors result in a state whose residents have to struggle to meet their daily needs, not to mention being able to pay off existing debt. However, there are programs and services available for New Mexico debt relief, including resources available to help you get back on track to improving your financial situation.

Credit Card Debt in New Mexico

The average individual in New Mexico has $3,346 in credit card debt, ranking just below the median average of $3,705 held in debt across the United States. In addition, housing prices have climbed by 18% year over year, leaving families in the difficult position of handling rising mortgage costs and higher rents. 

A recent study showed that rising inflation — already a problem throughout the entire nation — has hit New Mexico and several other western mountain states the hardest, with residents shelling out an average of $511 more per month than they did a year ago

All of these costs have led residents of New Mexico to rely on their credit cards for additional relief. However, using credit cards to handle rising expenses results in more debt, which can create a never-ending cycle to deal with when you can only make a small dent each month. This situation pushes New Mexicans to seek reliable resources for effective debt relief solutions.

Rather than spending money on interest that benefits only banks, you could save for your retirement. Choosing the right New Mexico debt relief program can set you on the right path to becoming financially free.

To discover how long it will take to pay off your credit card debt using only minimum payments — and how much interest you’ll pay while doing so — use the convenient calculator here.

Minimum payments can turn into a debt trap

How do banks make money? They charge interest on the loans they provide. Credit cards are a form of unsecured loan.

It’s normal for people in New Mexico to think that when they pay the minimum payment on their credit card, they are repaying part of their debt. However, the minimum payment mainly consists of the interest charge imposed by the bank. When you limit yourself to making only the minimum payment, you are unwittingly increasing your credit card balance.

When the credit card balance increases, the minimum payment also increases because it’s a percentage of the balance. However, despite making these payments, you are primarily covering the interest charges. As you continue to use your credit card, the balance keeps growing. 

While you may believe that you are managing your credit card debt by making minimum payments, the reality is that you are not effectively reducing the overall debt.

When you max out your credit card, you can contact Americor to get help regarding your credit card debt or any other type of debt relief you may need. 

What happens if I don’t pay the minimum payments? What is credit card delinquency?

Your bank expects you to make the minimum payment. If you fail to make two consecutive minimum payments, your debt will be considered delinquent. 

The bank has the right to increase the interest rate on your credit card because you are seen as a high-risk borrower, and you will be charged late fees, which will be added to your balance.

Credit card delinquency levels reached 9.81% in 2023, making them some of the highest in the United States. Individuals in New Mexico are facing difficulties in repaying their credit card debts, including minimum payments. If you find yourself overwhelmed by credit card debt, Americor can assist you in achieving a debt-free future.

What Causes Credit Card Debt?

New Mexico residents are not alone in fighting with credit card debts and other types of debts. All across the United States, people are struggling with their debts. 

Incomes and prices: a mismatch

There is an increasing mismatch between incomes and prices, especially given the current inflation rate. Households in New Mexico are struggling under very difficult circumstances to cover all their living expenses with their income. 

When money is simply not enough, they rely on their credit cards to pay for necessities such as groceries and gas. If this pattern persists for several months, the credit card balance grows, which can stress New Mexico residents about their debt.

Unpredictable expenses

Life is full of surprises, sometimes good, other times bad. A large unexpected expense can rock your household finances. Whether it’s a home or car repair, a divorce, a funeral, or a health emergency, it can cause a dent in your personal finances. Unless you have an emergency fund you can rely on, personal loans and credit card loans are the easiest and quickest ways to pay for such expenses.

Sometimes, however, people in New Mexico find it hard to repay a debt. That’s when a credit card balance turns into credit card debt.

Medical bills

Medical bills can pose a financial challenge for any household. Even with health insurance, deductibles must be paid before the insurance coverage takes effect, and many people use their credit cards to cover these deductibles. Uninsured individuals often struggle to afford medical emergencies, relying heavily on personal loans and credit cards to meet their healthcare expenses.

New Mexico Debt Relief Solutions

There are several solutions available to you when debt becomes unbearable. 

Credit counseling in New Mexico

Credit counseling helps New Mexico residents better understand their finances. Household incomes and expenses can easily confuse people. Credit counseling helps them get a better grasp of how they spend their money. Small changes in spending patterns can leave enough room to repay debts with careful financial planning.

Debt consolidation loans in New Mexico

Americor debt specialists can help you negotiate a debt consolidation loan that rolls all your existing debts into a new loan. The new loan allows you to repay your existing debts, and you only have to repay one loan with a single monthly payment.

A debt consolidation loan comes with fixed interest and fixed monthly payments to make life easier and more straightforward for you. The interest rate on these loans is often lower than that of credit cards and certainly lower compared to payday loans.

Americor can help you negotiate the repayment period for your debt consolidation loan, from 12 to 72 months. You can stretch or shrink the repayment time according to your needs.

Debt settlement in New Mexico

Americor debt specialists can help you negotiate a debt settlement where your overall debt is reduced by up to 50%. With debt settlement, you only pay the remaining debt in a lump sum, which can sometimes be spread over 12-24 months, and you become debt-free. Debt settlement negotiations depend on your income level, debt level, and household circumstances.

You can start afresh in your financial life, but your credit score can take an initial hit. If you adhere to careful financial planning and sound spending, your credit report will improve.

Debt management in New Mexico

Debt management helps you establish a Debt Management Plan (DMP) whereby you negotiate with your creditors for more favorable repayment terms. That can mean lower interest rates, an extended repayment period, and potentially the waiving of late fees and other charges. Debt management can help you repay your debt in a tailor-made way that fits your household’s finances.

Bankruptcy in New Mexico

If none of the other solutions offer sufficient debt relief, bankruptcy becomes your final opportunity. When you file for bankruptcy, your case is presented by a lawyer and examined by a court with the objective of relieving you from a portion or the entirety of your debts, allowing you to make a fresh start in your life.

Although the court can determine that part or all of your assets have to be liquidated to pay your creditors, at the end of the proceeding you will emerge debt-free. 

Given that bankruptcy remains on your credit history for ten years, it is imperative not to make the decision lightly.

Discover Effective Strategies For Overcoming Debt in New Mexico

If you live in the enchanting state of New Mexico and struggle with managing your credit card debt, take solace in the fact that you are not alone in your frustration. 

Contact us today for personalized debt relief advice and service tailored to your circumstances and get started on your debt relief journey with expert guidance. Let us help you understand the complexities of debt management and repayment. 

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Our Clients Say...

  • Lannie D.
    Stars Stars Stars Stars Stars

    “In 2020, I was drowning in debt. I enrolled in Americor for my 10 creditors for $110,000… and today (three years later) I have cleared my entire balance. It was not an easy process, but Americor guided me through and I am debt free!”

  • Matthew E.
    Stars Stars Stars Stars Stars

    “I was down $80k in business debt, and I remember hearing Americor radio advertising. My credit score was down to 570 from 810. I’ve been in the program for over 3 years. It works, just be patient. And my credit score is currently back up to 710!”

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Coral R.
Coral accumulated several personal loans with high interest and extremely long terms, which led to her into $55,000 of debt. These companies were predatory lenders, meaning they were using unfair and deceptive practices which in turn made her feel completely trapped.

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