In a Nutshell

New Mexico, the Land of Enchantment, is famous for its cuisines, scenery, and culture, making the thriving tourism sector one of the leading employers in the state. Although it’s home to thriving industries like oil and gas, a steady unemployment rate of 3.5% has made it difficult for some residents to overcome debt.

Overwhelming debts from credit cards, personal loans, and medical bills can be a major source of stress and anxiety, making it difficult to meet day-to-day expenses. Fortunately, New Mexico residents can access several effective debt relief options, including debt consolidation, debt settlement, and credit counseling.

Last year, TurboDebt helped residents achieve an average savings of 51.97% of their total debt. So, if you’re looking for effective strategies and low-cost solutions to alleviate debt, don’t hesitate to contact us. We cover all you need to know about how different debt relief options work in New Mexico below, as well as key statistics and other financial hardship resources specific to residents of the Land of Enchantment.

How Does Debt Relief Work in New Mexico?

Some of the most effective forms of New Mexico debt relief involve negotiating for lower interest rates, removing late repayment fees, and lowering monthly payments. Residents may also qualify for partial or full debt forgiveness by working in the public sector or facing financial hardship based on income. Your monthly income, credit score, and personal financial situation determine the best debt relief option for you.

New Mexico Debt and Finance Statistics

Some key debt and financial statistics in the state of New Mexico include:

  • The average consumer debt in New Mexico increased to $80,508 in 2022.
  • The average auto loan debt is $24,837.
  • Residents pay a monthly median mortgage cost of $1,359 and a monthly rental fee of $897.
  • The median home value is $184,800.
  • The median student loan debt in the state is $28,571, and an average of $34,211.
  • The median household income in the state is $54,020, and the per capita income is $29,624.
  • The average credit score in the state is 699.

Average Consumer Debt

The average consumer debt in New Mexico increased to $80,508 in 2022 from $79,194 in 2021. This was due to increased consumer spending amidst an inflationary economy, with prices rising faster than income levels.

Credit Card Debt

In 2022, residents of New Mexico owed an average credit card debt of $5,350, which is an increase from $4,821 in 2021. The rise in average credit card debt can be attributed to the increase in consumer spending as people try to keep up with the high cost of living.

Auto Loan Debt

New Mexico residents amassed an average auto loan debt of $24,837 in 2021, up from $23,700 in 2020, due to increased car prices because of supply chain issues and other pandemic-related disruptions. 

Mortgage Debt

New Mexico has a median home value of $276,179 and a homeownership rate of 68.2%. Areas like Santa Fe trend upward, with home values at $526,026, while areas like Roswell and Farmington sell for $146,744 and $213,794, respectively.

Residents of the Land of Enchantment pay a monthly median mortgage cost of $1,359 and a monthly rental fee of $897.

Student Loan Debt

Residents of New Mexico have a combined student loan debt of $7.8 billion. The average student debt is $34,211, and 44.3% of students with loans are below the age of 35. However, the median student loan in the state is $28,571.

Household Debt

The debt-to-income ratio in New Mexico increased to 1.596 from 1.534 in 2021 as the national household debt decreased to 75.20% of the GDP in Q3 of 2022.


In general, the number of bankruptcy cases in New Mexico has been declining since the Great Recession. In 2022, residents of the Land of Enchantment filed 1,075 bankruptcy cases, down from 1,510 in 2021. Chapter 7 bankruptcy cases were the highest at 909, while Chapter 13 bankruptcy cases followed at 157 and Chapter 11 bankruptcy cases at eight.

Average Income and Employment

At the peak of the pandemic, unemployment rates in New Mexico reached a high of 9.8%, decreasing to 3.5% as of April 2023.

The drop in unemployment rates may relate to growth in the industrial sector, where mining grew 9.2%, and healthcare and social assistance, the largest employer, experienced a 1% growth rate in 2022. Generally, the state’s growth rate is 1.4%.

The median household income in the state is $54,020, while the per capita income is $29,624. However, 18.4% of the population in the state is living below the poverty. This figure is well above the national average of 11.6%, making it clear that many New Mexico residents struggle to pay for basic needs. 

Credit Scores

New Mexico’s average credit score sat at 699 in 2022, unchanged from the previous year. A poor saving culture has led to credit card utilization, thus affecting credit scores negatively for those who fail to pay credit card debt.

Regardless of the unchanged credit scores, a FICO score of 699 is considered adequate for accessing personal loans at reasonable interest rates. 

Identity Theft

New Mexico is among the best states when it comes to dealing with fraud due to its identity theft passport database.

The state reported 2,088 identity theft cases and 11,948 fraud and other cases, with a median fraud loss of $390.  The top types of identity theft in the state include the following:

  • Credit card fraud at 34%
  • Other identity theft at 25%
  • Bank fraud at 17%
  • Employment and tax-related fraud at 15%
  • Phone or utility fraud at 13%

Banking and Tax Info

New Mexico has 32 banking institutions with total deposits of $17,414 million, a decrease from the $17,847 in assets during the previous quarter. The largest financial market is Albuquerque, with $21,451 million in deposits.

New Mexico is considered tax-friendly because of its various incentives, which aim to lure investors, grow businesses, and reduce unemployment. Its residents have the following tax burdens:

  • Top individual tax rate of 5.9% and an individual state and local tax rate of 8.8%
  • Top income tax rate of 5.9%
  • State sales tax rate of 5.125% and an average local sales tax rate of 2.71%
  • Gasoline tax of 18.88 cents per gallon of gasoline and a $2 cigarette tax for every 20-pack of cigarettes
  • Property tax of 0.67% of the homeownership rate and a per capita state and local property collection of $899

How We Helped New Mexico With Debt Relief Last Year

TurboDebt is a debt relief company that has managed to work with 1,487 clients from New Mexico. Out of this number, 464 clients enrolled in our debt relief program, with an average enrolled debt of $21,435 per client. After completing our debt relief program, individuals saved up to 51.97% of their total enrolled debt before fees.

Take advantage of our free consultation and learn how much we can save you with a customized debt relief program.

How TurboDebt Helped New Mexico Residents With Debt Relief Last Year

Top Types of Debt to Get Relief from in New Mexico

At TurboDebt, we enroll the following top types of debt in our debt relief program. Join us today for a free consultation and learn about our solutions for a debt-free life.

Credit Card Debt

Credit card debt can be difficult to clear due to late payment fees and high interest rates on unpaid balances. Many residents of New Mexico spend more than they earn because of a low disposable income and high cost of living, charging more on credit accounts to cover expenses. This financial situation often leaves residents in debt.  

At TurboDebt, we’re passionate about helping you overcome credit card debt through our relief options. We offer clients an opportunity to become free from credit card debt through consistent monthly payments at a lower amount than you would pay through your normal credit card bill. Contact us now to take advantage of our free consultation and see how much you could save.

Divorce Debt

The New Mexico Community Property Law binds debt and assets into one, meaning that when you divorce, debts and assets are divided between spouses regardless of who owns them. You may end up accumulating divorce debt if your spouse has unpaid personal debts.

Our experts can help you pay off your divorce debt. It all starts with an examination of your financial situation to determine the most effective solution to help you achieve your goals.

Business Debt

With incentivizing tax credits, companies often find opening and running a business in New Mexico lucrative. Therefore, they take out commercial loans to fund their expansion to build infrastructure and maintain operation costs, resulting in business loans.

TurboDebt is determined to help you clear your business debt, which can help you avoid debt collection agencies from pursuing foreclosure on your business assets.

Medical Debt

New Mexicans have an average medical debt of $2,692, and 12% of them are uninsured, making it difficult to find affordable, quality healthcare. As such, residents accumulate medical debt when trying to access medical care.

If you're burdened by medical bills, consider working with a nonprofit credit counselor or one of our TurboDebt specialists to find the best debt management option for you. Depending on your debt–to–income ratio and other key factors, we'll help you determine the best way to start paying off medical debt.

Homeowner Debt

The housing market in New Mexico, like many areas of the country, is in a state of fluctuation amidst high prices. The number of houses that sold above the listing price decreased to 7.2% from 15% in May 2022, coupled with a decline in the number of homes for sale. Higher home prices and rising interest rates have made it difficult for buyers who take on more debt to own a house.

A New Mexico debt relief program can help you settle homeowner debts and avoid foreclosure. Talk with TurboDebt's expert team for advice on how to overcome outstanding debts related to your property.

Retirement Debt

An increase in pension funding has led to a strong market rally which has further increased the chances of closing the pension funding gap in 2021. This is only a short-term effect as the projected growth in pension returns is expected to drop to around 6% from 60% annually.

In addition, New Mexicans have an average pension-funded ratio of 67%, which is below the national average of 71%. These conditions lead to a possibility of accumulating retirement debt due to low or unfunded pension returns.

At TurboDebt, it’s our priority to help you minimize and pay down retirement debt through our debt relief options.

New Mexico Debt Relief Options

Residents of New Mexico can access the following options to start living a debt-free life:

Debt Management Programs

Debt management programs (DMPs) are generally offered by organizations that work to negotiate a debt management plan tailored to your debt-to-income ratio (DTI). DMPs work by settling unsecured debt and reducing interest rates, making monthly payments manageable to clear debt.

New Mexicans who enroll in DMPs can clear the unsecured debt in 3 to 5 years by making one monthly payment to a single checking account.

Debt Consolidation Loans

Debt consolidation involves taking a new large low-interest loan and using it to clear your high-interest debts or credit card debts. Your consolidated loan should cover your accrued debts in a lump sum. Once you pay off your outstanding balances, you're left paying a low-interest loan through a single monthly payment.

Debt consolidation loans include balance-transfer credit cards, personal loans, and home-equity loans, but to access them, you must have a good credit score and reasonable DTI. When accessing debt consolidation loans, beware of the repayment period and interest fees to avoid paying more than the existing loans you’re consolidating.

Debt Settlement

Debt settlement is a debt relief option where creditors and third-party debt relief companies agree on a lump sum debt payment to reduce the debt balance. New Mexicans who apply for debt settlement plans often pay up to 50% less than what they originally owed before paying fees to the settlement company.

Be diligent in choosing a debt settlement company to avoid scams that ask for an upfront fee. You can avoid such situations by checking the credibility of these companies on Trustpilot, Google, or the Better Business Bureau. Look for their accreditation and positive reviews from actual clients who've alleviated their debt burden through the settlement company. 

Credit Counseling

Credit counseling is a debt relief option providing education about finances, debt management, and budgeting skills. Credit counseling organizations offer educational workshops where certified credit counselors advise you. They’ll also help you attain credit reports and choose a debt management plan. Together, you’ll select a debt management plan based on your DTI.


Bankruptcies are filed by businesses and residents who can’t afford to pay off their debts. This process offers you a clean slate where debt is forgiven or reorganized for payment, but it’ll hurt your credit report for 7 to 10 years. The bankruptcy cases New Mexicans can file include the following:

  • Chapter 7 bankruptcy cases allow residents of New Mexico to liquidate their nonexempt properties to clear off unsecured debt like credit card debt.
  • Chapter 13 bankruptcy cases are for residents with consistent incomes who are able to clear their debt under a debt reorganization plan. In Chapter 13, your nonexempt assets don’t need to be liquidated to clear off the debt.
  • Chapter 11 bankruptcy cases are suitable for businesses that are unable to clear their business debt. This process institutes a debt reorganization plan while you continue with your business operations as outlined in the US bankruptcy code.

If you're considering bankruptcy, consult with a law firm for legal advice on the best type of bankruptcy case to file, as secured debt, like auto loan debt, may result in repossession.

Debt Forgiveness

Debt forgiveness is a form of debt relief where your debt is partially or entirely forgiven. To receive this benefit, you must be eligible for a debt forgiveness program such as the following:

  • Federal student loan forgiveness
  • Teacher loan forgiveness
  • Public service loan forgiveness

Debt and Financial Hardship Resources in New Mexico

Low-income or needy families in New Mexico can receive debt and financial hardship resources to meet their basic needs under the following programs:

Temporary Assistance Programs

The TANF program in New Mexico, referred to as NMWorks, offers eligible low-income families monthly cash assistance to cover their basic needs, including housing, clothing, and food.  Other cash benefits for eligible low-income families in New Mexico include the low-income energy assistance program and the Refugee Resettlement Program.

State Health and Human Services

The state of New Mexico has a Patients Debt Collection Protection Act that seeks to protect low-income families and individuals from medical debt collections. Other financial assistance and hardship programs available to New Mexicans include the following:

  • Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
  • Immunization programs
  • Centennial Care program, which acts as the state’s Medicaid, and delivers physical health, emotional health, long-term care, and community-based benefits for qualifying low-income residents
  • The New Mexico Crisis and Access Line, a free service offered to residents struggling with addiction and substance abuse

Child Care

The Child Care Assistance Program is a subsidized childcare program for families that are studying, working, or looking for employment and are living 400% below the federal poverty level.

New Mexico Maternal Child Health seeks to prevent infant and child deaths by advising parents on the best maternal care health.

Shelters for the Homeless

The state of New Mexico seeks to mitigate homelessness that results from poverty, foreclosures, or any challenging economic situations. Residents should contact the shelters in advance to check the availability of beds before visiting to stay.

Free Transportation Services

The Rio Metro ACCESS Program offers free transportation services to New Mexicans with income below 150% of the federal poverty level.

A senior transportation program also offers transportation services to elderly residents needing a ride to medical appointments or shopping destinations.

ModivCare also offers transportation services for medical trips to doctors.

Get Debt Relief in New Mexico Today

Debt relief options offer key advantages compared to simply making monthly payments or continuing to struggle with a never-ending cycle of debt. You can often secure reduced interest rates, lower monthly payments, better help in managing your credit score, or a combination of these.

TurboDebt is here to help you make an informed decision on managing your debt and working towards building wealth again. Take advantage of our free consultation to learn more about how we can help you today.