Get Out Of Credit Card Debt in New Mexico

August 16, 2019 Jonathan Gavalas

debt consolidation loans

 

Credit card debt sucks. Are you ready to get rid of that nasty credit card debt? In this article, I have given tips on how to legally eliminate your debts and for good! 

Many people in New Mexico have found themselves in debts because they don’t understand the cost of high interest rates. Credit cards are known to have high interest rates.

If you are struggling to deal with credit card debt, follow these steps;

Make a Budget and avoid making new Purchases

Your ultimate goal is to be debt free so avoid making new purchases that will add to your debt. Instead, use the money to pay down your existing balance. Make a detailed budget in order to free as much money as possible to pay your debts.

A budget will help you track your spending. It will also guide your decision about what strategy to use to help pay off your debts

Make a list of your fixed expenses such as rent, electricity and water bills, food, car payments. Seeing how much money remains after your expenses will help you decide how to approach your debt. 

Evaluate your finances

Next step is to evaluate your finances. Create a list of every debt you owe such as your credit card debt. It is important to know where you stand because a lot of people will say they have certain debt when in reality they have more.

You will never be able to clear all your debt if you do not know how much you owe. Do not forget to note down also interest rate of every card you have.

Negotiate a Lower Credit Card Payment

The quickest way to get out of your credit card debt in New Mexico is to negotiate for a lower interest rate with your credit card company. You will be able to save hundreds of dollars which can be used to pay your debts.

You can call your company and negotiate for a lower rate or can employ the services of a debt relief company that can negotiate on your behalf. 

Do your homework before you negotiate

It is important to know the balance that you have plus the interest rate that you normally pay before calling your credit card company. Call when prepared because you will have to engage in some negotiation.

Other important info to know include statement due date and the grace period. 

You will also be required to explain why you need a lower rate. Check also if you have good credit score. Credit companies know that losing good customers is expensive for them hence are willing to negotiate. 

Call your Credit Card Company 

Once you are prepared to negotiate, call your credit card company and explain why you need a lower interest rate. Most of the times, the issuer will say yes if you have a genuine reason for wanting to lower your rate.

If it happens you get a rejection, you should not stop there. Call and ask for a manager who might have more decision making power. 

Debt Relief Options in New Mexico

If you are one of those people in New Mexico overwhelmed with a credit card debt, there are debt relief options that can help you get out of it. It is crucial that you take action to slow the accumulation of your debt before your creditor sues you.

The debt relief options available to you include debt consolidation, debt management plan, consumer credit counseling, just to name a few.  

Debt consolidation

Debt consolidation is a good debt relief option to explore. You will take 1 loan to pay off all your unsecured debts such as credit card debt. It is important that you select a reputable company for this.

There are scams too in New Mexico, don’t fall victim. 

Debt consolidation will be worthwhile if you will get a lower interest rate and monthly payments. Before you get a loan with consolidation companies, you will be needed to have a good credit score. Here are the benefits of this debt relief option;

-Consolidation companies have certified experts who will find for you the lowest monthly payment and interest rate

-No more calls from your credit card company hence you will have peace of mind

-They will help with your financial problems

Consumer credit counselling in New Mexico

Consumer credit counselling is a service given mostly by consumer credit counseling agencies. These are non-profit organizations that will help you find a solution to your financial problems.

Their services are affordable and will use your budget to come up with an affordable monthly payment. They may also recommend you make monthly payments with them and they pay your creditors.

Debt management Plan

Debt management plans can lower your total credit card debt by 40% to 50%. Their goals is to reduce debt by lowering interest rates and monthly payments. They will keep your payments on track.