HomeDebt ReliefWhich Debt Relief Option is Best For You?

Which Debt Relief Option is Best For You?

New Mexico debt relief services that provide low-interest, debt-free loans can aid you begin to repair your credit rating. Debt consolidation links multiple debts to a single monthly payment, usually with a much lower interest rate than the individual debts. Most debtors do this via a loan, line of credit, or bill consolidator. These services can reduce your current monthly debt burden and help you prepare for the future.

In New Mexico, debt relief services are offered by several types of non-profit debt consolidation companies. Some are nonprofit and others are government-sponsored. Non-profit companies generally have a better track record, but some are out to make a profit. Bankruptcy law varies greatly in New Mexico, so it’s a good idea to research your choices for debt relief thoroughly. Most debt consolidation companies in New Mexico will give you free, no-obligation quotes for debt relief.

The best way to choose the debt consolidation firm for you is to shop around. When you meet with debt consolidation experts, ask them about their firm’s history and success. Ask for references and check them out with the Better Business Bureau. They should have no problem providing you with the information you’re seeking. Once you’ve found at least three debt consolidation companies to look into, make an appointment to meet with each one and discuss your options.

Another option in New Mexico for debt relief and credit counseling services is to work directly with a debt settlement or consolidation firm. You’ll pay them a lump sum in exchange for reduced payments over an agreed upon period of time. Debt settlement companies are overseen by the Federal Trade Commission, which makes sure they practice fair debt collection practices. Some settlement firms offer loans that will pay off your creditors while you work with them to repay the loan in full. Some companies are more involved and offer financial advice.

The fees you pay to these debt relief or credit counseling services may be paid in a variety of ways. You may be required to make a monthly payment, use a credit card for monthly payments, or agree to pay a percentage of your debt in interest rates over an extended period. There may also be a fee associated with the debt settlement or consolidation firm’s professional fees. Interest rates on these loans are much higher than they would be for a traditional loan. To protect yourself, ask if the debt settlement or consolidation firm will negotiate interest rates on your behalf.

While not all debt relief and credit counseling services are based on a government program, many are. One type of debt consolidation program offered by the government is the debt consolidation program offered through the Consumer Financial Protection Bureau. The CFPB’s mission is “to promote sound financial decisions and provide information about debt relief and credit counseling to consumers.” In addition to offering free information, the CFPB monitors and disciplines companies that are involved in debt relief or credit counseling programs which do not meet the bureau’s standards.