Get Debt Relief without a Personal Grant
There are several reasons why New Mexico consumers may want to find a debt relief grant or some form of government assistance to resolve debts. While this type of credit card assistance is not available either from the state or federal government, there are other types of help available to consumers struggling with out of control credit cards and other debts. Besides personal bankruptcy, there are a variety of debt relief options that may bring relief for consumers through debt consolidation or debt management plans (DMPs), credit counseling, debt counseling, and debt settlement or debt negotiation.
If you are experiencing a financial hardship and are in need of relief, you can request your free debt relief evaluation and savings estimate to see if debt relief could help you.
Understanding Your Debt Relief Options
Debt management, debt consolidation, debt settlement , or even "simple" credit counseling have become popular alternatives to bankruptcy, which is considered to be the debt relief option of last resort. You may rest assured knowing that expert help is available. Through structured debt relief plans based upon your existing debt and your available income to pay down those debts, you may find yourself living a financially free life much faster than you thought possible.
Debt Consolidation and Debt Consolidation Loans
If you are having difficulty handling and paying off debts from a number of sources, such as credit cards or other types of unsecured debts like retail store cards, gas cards, doctor bills, utilities, or more, debt consolidation through a debt management plan or debt management program (DMP) could potentially make it much easier to pay off debts at a pace you can afford. Debt consolidation, or a debt management plan, gives individuals and families struggling with multiple debts a way to combine, or consolidate, high-interest credit card and unsecured debts into a single, more manageable, payment plan made to a credit counseling agency. Credit counseling agencies then disburse those funds to credit card companies.
Typically when you enroll in a debt consolidation program, credit counselors review your finances, amount of debt, and sources of income to determine how much money you can reasonably allocate each month to pay down your debts. Debt relief counselors then create a strategy to help reduce your high interest rate debts and submit proposals on your behalf to creditors requesting the benefits of debt relief. These can include reduction of interest rates, the waiving of late fees and penalties, and generally more favorable and lenient repayment plans. Creditors who see that you are indeed going through a financial hardship will be more likely to accept debt proposals and also be willing to add your account to the structured debt management plan for payment over time until your debt with them is resolved.
State Resources for Low-Income Families
Low-income families or those in need of a helping hand while going through tough financial times will find that the state of New Mexico does not offer debt grants or programs specifically designed to help consumers with credit card debt reduction. The good news is, the state has programs and resources to help low-income individuals and families – including the elderly and those requiring medical assistance – get immediate access to food, healthcare, childcare, and help paying for utilities. For more information about these resources, go to the state's Human Services Department official page Looking for Assistance section.
Debt Settlement or Debt Negotiation
If you have the discipline to accumulate money in a designated "set aside" account so that you will have the funds necessary to extend a settlement offer to creditors, then settling your debts is a way of resolving credit card debts that may work for you.
Debt settlement is a way for credit card companies to get at least some of what you owe returned to them. It is important to know that is common practice for credit card companies to eventually "sell off" your debt as "bad debt" to a third-party debt collector if they see that you have fallen behind on your payments by 60 or 90 days or more. They may only receive as little as 10 cents on the dollar if they do this. So, it's logical that credit card companies in this position may be willing to accept a reasonable settlement offer made by you or by a debt negotiation company for substantially less than the full amount owed.
There are some additional key factors to be aware of with debt settlement. For instance, debt settlement will typically have a negative impact on personal credit, but not as severe or long lasting as a personal bankruptcy. In addition, any monies saved through credit card settlements are subject to federal taxation. Lastly, when consumers default on the terms of credit card agreements in order to set aside funds in a settlement account, creditors may threaten or take legal action.
Even though debt settlement has legal and tax implications, it is growing in popularity as an option for consumers who would rather settle debts for as much as they can reasonably afford, rather than default on debts entirely and file for personal bankruptcy.
To review your debt relief options and see how much you can save, answer a few simple questions to get a free debt relief estimate and savings analysis from a BBB-accredited debt relief provider.