Albuquerque Debt Consolidation Lawyer
Those who live and work, and run small businesses in Albuquerque know the importance of doing their financial homework. Even still, the cumulative impact of day-to-day decisions and the consequences of unforeseen challenges can all result in unexpected financial hardship. A household could be feeling prosperous one day only to feel financially vulnerable the next when debts pile up beyond their ability to pay.
The good news is that you not only have options, but you also have financial rights. Working with an experienced debt relief law firm in Albuquerque can help you avoid being taken advantage of while seeking the best solution to your financial challenges. Far too many hard-working individuals in Albuquerque fall victim to debt consolidation scams and other predatory financial programs. Preserve your rights, and determine the best path forward by working with one of our experienced Albuquerque debt consolidation attorneys.
New Mexico Financial & Family Law provides representation during bankruptcy cases, and we can also assist you with creating workout agreements with individual creditors or reviewing the terms of possible debt consolidation programs. We are ready and waiting to assist you in finding the best path forward. Call (505) 503-1637 or contact us online to schedule your confidential, no-obligation consultation today.
How Can an Albuquerque Debt Relief Lawyer Help Me?
When you are faced with what feels like a mountain of debt, you have many options at your disposal for relief. But beware: not all of them are in your best interests. Many debt consolidation and debt relief programs sound too good to be true, and that’s because they are.
Unfortunately, those looking for a quick fix to get rid of their debt often get caught up in the con. According to a report by the AARP, “the FTC received 20,590 consumer complaints related to credit and debt counseling in 2021, more than in the prior two years combined.”
A debt consolidation lawyer in Albuquerque can help you review any potential agreement that claims to help you reduce your debt or to simplify the process of repaying it. What’s more, an attorney can help you negotiate more-favorable terms from your contract. This due diligence helps you avoid falling victim to common debt consolidation scams while also flexing your muscle as an individual with rights.
Many debtors also overlook the possibility of workout agreements with individual creditors. A workout allows you to pay off a portion of your debt according to a certain schedule, with some of the debt potentially forgiven. Each creditor will have different needs and a different willingness to settle, so it takes a skilled and experienced Albuquerque debt financing attorney to help negotiate deals that protect you while reducing your financial burden.
Bankruptcy is also an option for those seeking to have some of their debt discharged (forgiven), helping them get a fresh start.
Before making any big moves or agreeing to a deal that sounds like it could be too good to be true, consult with a legal professional. They will help you understand your rights and obligations. Schedule a consultation with an attorney at New Mexico Financial & Family Law to talk to someone ready to listen and help.
Tips for Avoiding Debt Consolidation Scams in Albuquerque
There are many methods for dealing with large amounts of debt, and debt consolidation can be one of those options. However, anyone in Albuquerque who is considering debt consolidation should recognize that many of the services they hear advertised are not working in their best interests.
“Debt consolidation services” are a common way to package predatory lending solutions, among other scams. Individuals seeking debt consolidation have the goal to make their debt more manageable: lowering payments, reducing the number of credit accounts, and sometimes reducing the interest. With many debt consolidation scams prevalent around Albuquerque, these services accomplish just the opposite of those goals.
Protect yourself with the knowledge to avoid scams when seeking debt consolidation in Albuquerque. As experienced debt consolidation and bankruptcy attorneys in Albuquerque, New Mexico Financial & Family Law is familiar with some of the most obvious signs that a supposed “debt relief” service could make you worse off than before. Know that many services offered by these companies can be accessed by directly speaking to your creditors or a reputable lending institution. Referring to an attorney can also allow you to fully assess your debts, understand your options, and proceed forward with a strategy that makes your debt better — not worse.
Know That You Have Free Debt Counseling Options
Debt relief programs often promise quick fixes — but then they come at a high price. Consumers are often convinced that in order to get rid of their debt, they need to invest in a debt relief solution.
In truth, many debt relief programs are available entirely free of charge, in New Mexico and across the U.S. Credit counseling is available for free through non-profit programs certified by the National Foundation for Credit Counseling (NFCC). Many organizations claim to be “not for profit” or deceive debt holders into thinking they are sanctioned government programs when they are not. Look for NFCC certification in order to avoid getting scammed. Note that, currently, only one group in New Mexico is certified by the NFCC.
Additionally, many debt relief agencies promise to do something for you that you could do yourself for free: negotiate payment plans, lump sum debt settlement agreements, or modifications to debt agreements. These activities are best handled by the debt-holder themselves in partnership with a reputable and experienced debt relief attorney. With a client-attorney relationship established, the debt holder has greater control over the strategies used to seek relief from their debts, compared to hiring a company that promises to take the matter “off your hands.”
Avoid Paying for Anything Up Front
Many debt consolidation scams request payment for processing your application or to start your use of their service. These up-front charges are often considered fraudulent by the FTC because individuals are only supposed to pay for financial services once they have been rendered.
Watch Out for Anything That Sounds Too Good to Be True
Supposed debt relief companies often make exorbitant promises about making your debt go away or getting it settled for a tiny percentage of your total balance. In reality, most collectors will only agree to a slight reduction in the total debt owed during negotiations. The only legitimate way to have debt “eliminated” is to file for bankruptcy and successfully receive a discharge on applicable debts.
Only Provide Payment for Immediate Reduction of Debt
Be wary of debt consolidation services that promise to “hold onto” your regular installment payments until a final sum is achieved. Any and all payments rendered for the purposes of repaying debt should actually go towards that debt! Supposed “debt relief” companies should not be merely offering to help you save up — and charging you for the pleasure.
They Assure You That You Can Stop Paying Bills and Dealing With Creditors
Unless you have referred collections actions to a specific attorney you trust, never take anyone’s assurances that you can simply stop communicating with your creditors. Many debt relief scammers will promise you that you can stop worrying about dealing with creditors on day one. In reality, you may simply be causing penalties and interest to add up while no effort is being made to pay down your debt.
The only way to achieve complete and total cessation of communications with creditors is through obtaining an automatic stay as part of bankruptcy proceedings.
You’re Promised Access to a “New Government Program”
Any and all government programs providing debt relief can be accessed without the need to work with a third party! You have the right to review your options with the assistance of a financial relief attorney and inventory your finances before applying to such a program, but there is no situation where you would outright need to pay a company in order to access such a program.
Further, know that most government programs involve the pausing of payments, delaying of interest, or a temporary reduction of payment amounts. In emergency situations, such as a natural disaster or a pandemic, individuals may qualify for certain financing that offers forgiveness, but this is not the same thing as applying to have non-government debts forgiven.
The only “government program” to offer actual forgiveness of debts is bankruptcy.
Always Do Your Homework on a Debt Consolidation or Debt Relief Company
Debt relief scams are focused on getting you excited, thus overriding your natural instincts to evaluate before you commit. Instead, always scrutinize the supposed service provider. Look up reviews, and search through the FTC’s website for recent scams and related cases.
You can always seek a professional opinion from a licensed attorney. An attorney is required by law to provide an objective assessment as an unbiased party.
Finally, if you feel uncomfortable or see figurative red flags in any way, be prepared to walk away from the interaction. You may face extreme pressure once the scammer has received your contact information, but know that it is in your best interests to find your own solutions — and avoid paying for something that isn’t real.
Talk to a Reputable, Licensed Debt Relief Attorney
New Mexico Financial & Family Law has deep experience helping individuals find relief from their debts through bankruptcy. We have also helped our clients avoid bankruptcy when they have available alternatives. We pledge to give honest, objective counsel and never to do anything to mislead you into thinking there are easy options out of debt.
Whether you file for bankruptcy or use another method of reducing your debt, we are here to help you reach the next stage of financial freedom. Speak to an attorney during a confidential, no-obligation case review when you call (505) 503-1637 or contact us online to schedule your appointment today.