What Is Debt Relief in New Mexico? Is it a Good Deal for Me?

Being in debt can make you feel like you are drowning with no hope in sight. Student loan debt, credit card debt, and other high interest debt multiplies quickly, and can leave you feeling suffocated. 

In seeking relief from debt, you may have sought help from a private company that took advantage of you. Even if you don’t know it, you were scammed by them.  

Debt relief companies make a profit off the fees they charge their customers. Nearly every debt relief and debt management company will charge you fees before they do anything to help. They may lead you to believe that you are giving them money to go towards your loan payments, when in truth, the debt relief company is taking that money for their own fees. 

Is Debt Relief/Loan Management a Good Program for Me? 

Thanks to good policy making in New Mexico, debt relief, debt management or debt adjustment - also known as loan consolidation - is illegal here. Sometimes companies will call this practice “debt relief” and claim to reduce your debt to a fraction of what you owe.  Others put a lawyer licensed to practice law in New Mexico on retainer and pretend that you are being represented by that lawyer. That is generally a red flag that you are being ripped off.  

Is Debt Relief a Scam? 

Debt relief companies claim they can reduce your monthly credit card payments, and that’s not all. Debt relief companies often claim that they can reduce the amount of money you owe, and the amount of time it will take you to pay back your debt. What they don’t tell you, however, is that they often charge unreasonable fees, and take your money for themselves instead of helping you pay back what you owe. 

How Do I Know if I’ve Been Taken Advantage of By a Debt Relief Company? 

If a debt management company wants you to pay them before they’ve performed the promised service, that is a big red flag. Once they get your money, they tend to go silent and not fulfill the promises they’ve made to you. Debt relief companies do not help with your monthly payments, they take your money to pay toward their own fees and then leave you in the dark. 

What if My Debt Relief Company Says They Don’t Take Any Advance Fees? 

What a private company represents on its website may not be the same as what they put in your contract. Regardless, this practice of debt relief or debt adjustment is illegal in the state of New Mexico. And, unfortunately, the law doesn’t stop these companies from reaching out and preying upon New Mexicans who struggle with high-interest debt. You are the one who must take action to enforce and protect your rights.  

What Can I Do if I’ve Signed a Contract With a Debt Consolidation Company? 

The good news is that this practice of “debt relief”, “debt management”, “loan consolidation” or “debt adjustment” can be challenged by an actual practicing New Mexico consumer protection attorney. We can help you get all your money back! 

As we head toward a recession, more Americans will be left vulnerable to these companies and their predatory practices. 

We are licensed New Mexico Attorneys. We are a New Mexico law firm, and you will speak with a real lawyer in New Mexico. You will not be charged for anything by our law firm unless and until we obtain a recovery for you.  

Please Note: We do not generally provide representation to consumers to reduce your debt with credit card companies, student loans, or other creditors. We sue creditors for cheating our clients.  

Our mission is to stop the unlawful practice of charging people money to reduce their debt in New Mexico. Please call (505) 395-0042 for a consultation. (we only offer legal representation under the terms of a written agreement)