Best Debt Consolidation Loans in New Mexico 2024

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Updated: November 19, 2024

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Debt consolidation loans are unsecured personal loans that are used as part of a debt repayment strategy. It's a popular way to streamline and pay off debts you currently owe — like credit card or student loan debt — at a lower interest rate than what you're currently paying. MoneyGeek found PenFed to be the top choice for debt consolidation loans in New Mexico, scoring 96 out of 100. Although PenFed stands out in our analysis, you may also want to contact local lending options like First Financial Credit Union and Nusenda Credit Union to see if they fit your borrowing needs.

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2024

Best Debt Consolidation Loans in New Mexico

Best Overall - PenFed
Runner-Up - Alliant Credit Union
Best for Affordability - Wells Fargo
Best for Large Loans - PNC
Best for Fast Funding - Rocket Loans

Overall Best Debt Consolidation Loan Lender in New Mexico

Company logo for PenFed
PenFed
MoneyGeek Score:
96/ of 100
APR Range8.99% to 17.99%
Loan Amount RangeUp to $50,000
Repayment TermsUp to 60 months
Time to Receive Funds1 to 2 Business Days
Overview

PenFed offers the best debt consolidation loan in New Mexico with a MoneyGeek score of 96 out of 100. Several features contribute to an ideal debt consolidation loan lender, such as competitive rates, how much you can borrow, how quickly you can get your funds, the quality of service it provides, and its reputation.

PenFed's APR range of 8.99% to 17.99% can benefit borrowers by offering potentially lower interest rates compared to existing debts. Its loan amount range of up to $50,000 allows for significant debt consolidation.

Runner-Up for Best Debt Consolidation Loan in New Mexico

Company logo for Alliant Credit Union
Alliant Credit Union
MoneyGeek Score:
95/ of 100
APR RangeFrom 10.49%
Loan Amount Range$1,000 to $100,​​​​​000
Repayment Terms12 to 60 months
Time to Receive FundsSame Day
Overview

Alliant Credit Union is another solid option for a debt consolidation loan in New Mexico, with a MoneyGeek score of 95 out of 100. One of its pros is a low APR starting from 10.49%, which can save you money on interest payments over time. Another benefit is the high loan amount range of $1,000 to $100,000, allowing you to consolidate multiple debts into one loan.

Flexible repayment terms ranging from 12 to 60 months give you the ability to choose a repayment plan that fits your budget. For example, if you need lower monthly payments, you can opt for a longer term. Additionally, the same-day fund disbursement means you can quickly pay off your existing debts and start fresh.

Best Debt Consolidation Loan in New Mexico for Affordability

Company logo for Wells Fargo
Wells Fargo
MoneyGeek Score:
94/ of 100
APR Range7.49% to 24.99%
Loan Amount Range$3,000 to $100,000
Repayment Terms12 to 84 months
Time to Receive Funds1 to 3 Business Days
Overview

Wells Fargo offers the best debt consolidation loan in New Mexico for borrowers who prioritize affordability, with a MoneyGeek score of 94 out of 100. Its APR range is from 7.49% to 24.99%, making it a competitive option for those looking to consolidate their debts.

Affordability isn't just about interest rates. Wells Fargo has no origination fees, which means you won't have to pay extra just to get the loan. Additionally, the availability of rate discounts can lower your overall cost, making it easier to manage your monthly payments.

Best Debt Consolidation Loan in New Mexico for Large Loan Amounts

Company logo for PNC
PNC
MoneyGeek Score:
96/ of 100
APR RangeUp to 24.99%
Loan Amount Range$1,000 to $35,000
Repayment Terms6 to 60 months
Time to Receive Funds3 Business Days
Overview

PNC offers the best debt consolidation loan in New Mexico for borrowers who need a large loan amount or longer repayment terms, with a MoneyGeek score of 96 out of 100. It provides loan amounts ranging from $1,000 to $35,000, making it suitable for various financial needs.

PNC's flexible repayment terms, ranging from six to 60 months, allow borrowers to choose a plan that fits their budget. For example, a borrower consolidating multiple debts can opt for a longer term to reduce monthly payments. Additionally, PNC's quick fund disbursement within three business days ensures that borrowers can promptly address their financial obligations.

Best Debt Consolidation Loan in New Mexico for Fast Funding

Company logo for Rocket Loans
Rocket Loans
MoneyGeek Score:
95/ of 100
APR Range9.116% to 29.99%
Loan Amount Range$2,000 to $45,000
Repayment Terms36 or 60 months
Time to Receive FundsSame Day
Overview

Rocket Loans offers the best debt consolidation loan in New Mexico for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. It provides same-day access to funds, making it an excellent choice for those in urgent need of financial assistance.

One feature of this lender is its fast approval process. For example, a borrower needing to consolidate multiple high-interest debts can quickly get approved and receive funds the same day. Another feature is its flexible loan terms, allowing borrowers to choose between 36 or 60 months for repayment, which can help manage monthly payments more effectively.

Should You Get a Loan to Consolidate Debt in New Mexico?

Using a debt consolidation loan in New Mexico can simplify your finances by merging multiple payments into one. But it may not be the best option if the interest rate on the new loan is higher than your current debts. Consider your specific situation before deciding.

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    Good Credit

    Having good credit can qualify you for better terms on a debt consolidation loan in New Mexico, affecting interest rates and monthly payments.

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    High-Interest Debt

    If you have high-interest debt, a debt consolidation loan in New Mexico can lower your interest rates. For example, reducing 20% APR to 10%.

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    Multiple Payments

    Combining multiple monthly payments into one with a debt consolidation loan in New Mexico simplifies your finances. One payment is easier to manage than several.

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    Lower Monthly Payments

    A debt consolidation loan in New Mexico can lower your monthly payments. For example, reducing total payments from $500 to $300 per month.

When You Shouldn't Get a Debt Consolidation Loan

  • When your new monthly payment is higher: A higher payment increases financial strain, making it harder to manage expenses and save money.
  • When you can pay off debt within a year: If you can clear debt in a year, consolidation may add unnecessary costs.
  • When your income and employment are uncertain: Unpredictable income can make it difficult to meet loan payments consistently.
  • When your DTI ratio is high: High DTI can lead to loan denial or unfavorable terms, making consolidation less effective.

How to Get a Debt Consolidation Loan in New Mexico

The average amount of personal loan debt in New Mexico is $84,778, compared to the overall average debt in the U.S., which is $104,215. In New Mexico, the average monthly debt is $7,065.

Using a personal loan to consolidate debt in New Mexico can simplify your payments and potentially lower your interest rates. Going into the process blindly can lead to higher interest rates and damage your credit score. To avoid these risks, follow these steps to apply for a debt consolidation loan.

  1. 1
    Review your debts and credit score.

    Account for your existing debts to see which ones to consolidate, like credit card debt. Choosing the wrong debts can lead to higher interest rates. Check your credit scores and improve your credit score by paying bills on time and reducing outstanding balances.

  2. 2
    Compare loan terms from lenders.

    Compare loan terms from multiple lenders. Contact lenders to ensure you can use the loan for debt consolidation. Look at APRs, loan limits, and how soon you can receive the funds.

  3. 3
    Check for extra benefits.

    Some lenders offer added features that benefit you long-term. For example, in New Mexico, lenders like Upgrade and Alliant Credit Union offer rate discounts.

  4. 4
    Watch out for fees and penalties.

    Some lender features can be drawbacks. In New Mexico, lenders like Prosper charge an origination fee and OneMain Financial charges a late fee. These fees can impact your short- and long-term finances.

  5. 5
    Get prequalified.

    Prequalification helps you gauge eligibility without affecting your credit score. It uses a soft credit check, allowing you to explore options without impacting your credit.

  6. 6
    Complete your loan application.

    Complete your loan application by preparing necessary documents like proof of income and identification. This speeds up the process and ensures you have everything ready.

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WHAT TO DO IF YOU'RE DENIED A DEBT CONSOLIDATION LOAN IN NEW MEXICO

Lenders might deny your loan application for a couple of reasons. One common reason is a poor credit score, which indicates a history of missed payments or high credit utilization. Another reason could be a high debt-to-income ratio, suggesting you may struggle to manage additional debt.

Before applying for a consolidation loan in New Mexico, consider improving your credit score and reducing your existing debt. You can also reach out to some credit counseling agencies to help you manage your debts better. Another option is to use a 0% APR balance transfer credit card. This type of card allows you to transfer your existing debt and pay it off without interest for a specific period, helping you save money on interest payments.

Local Lenders for Debt Consolidation Loans in New Mexico

One reason people might consider consolidating debt is to secure lower interest rates, which can save money over time. The average APRs you can qualify for vary between cities. For instance, in Albuquerque, the average APR is 10.7%, with the first lender offering a rate of 10.5% and the last lender at 11.0%.

Another option to find the best debt consolidation loan in New Mexico is to consider other local lenders. Below is a table of local lenders to help you compare and choose the best option.

Nusenda Credit UnionAlbuquerqueFrom 10.50%0 to 60 monthsUndisclosed93
US Eagle Federal Credit UnionAlbuquerqueFrom 11%Up to 60 monthsFrom $30092
State Employees Credit Union of New MexicoAlbuquerqueFrom 10.74%Up to 36 monthsUndisclosed91
First Financial Credit UnionAlbuquerqueFrom 10.49%Up to 48 monthsUndisclosed89

FAQ: Debt Consolidation Loans in New Mexico

MoneyGeek addresses common questions homeowners have about debt consolidation loans in New Mexico. Our content provides clear, reliable information to help you understand your options. We cover eligibility, benefits, and potential drawbacks, ensuring you have the knowledge needed to make informed decisions about managing your debt.

What is a debt consolidation loan in New Mexico?
What's the best debt consolidation loan lender in New Mexico?
Can I get a debt consolidation loan in New Mexico if I have bad credit?
Can a credit counseling agency in New Mexico help manage debt?
When should I get a debt consolidation loan in New Mexico?

MoneyGeek analyzed 27 national lenders licensed to do business in New Mexico, based on a rubric that includes APR ranges, loan amounts, and repayment terms, among other key areas. We use a point-based system and assign scores according to the presence or absence of desirable features in various important categories.

We score lenders differently when recommending the best for affordability, loan amounts, and fast funding.

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We conducted our analysis in September 2024.

27Lenders Analyzed

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.

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