New Mexico is known as the “Land of Enchantment” for its captivating culture, cuisine, scenery and architecture. Tourism and military are two of the largest industries in the state, although the oil and gas industry accounts for a large part of the state’s economy, as New Mexico is the third-largest producer of crude oil and natural gasses in the country. Unfortunately for New Mexico, consumers still struggle with debt.
“New Mexico is facing unemployment rates higher than national averages, and higher debt levels as a result,” says Gary Herman, president of Consolidated Credit. “New Mexico residents need to focus on paying down credit card debt and shoring up savings to ensure they can maintain financial stability in the face of this economic uncertainty.”
The latest available data says that the average New Mexico household has $9,955 in credit card debt. Citizens in this state collectively owe $7,380,358,156, an increase of $205,975,269 from the beginning of the year.
Consolidated Credit Helps New Mexico Residents Reduce Their Total Credit Card Payments by Up to 50%
This chart shows a breakdown of average consumer debt in New Mexico based on the latest Household Debt report from the Federal Reserve.
In 2023, 1,193 New Mexicans filed for bankruptcy.
Income and employment in New Mexico
Since New Mexico is an employment-at-will state this means that an employer may terminate an employee for any reason or even no reason at all, and vice versa for the employee. However, there are a few exceptions:
Breach of Contract: Under New Mexico law, when an employee enters oral or written employment contracts they are no longer at-will employees. Unless the contract states otherwise, the employee may not be terminated at any time or for any reason.
Discrimination: Employers may not terminate employee relationships based on an employee’s skin tone, race, country of origin, marital status, pregnancy status, religion, sexual orientation, or disability.
Retaliation: Employers are not allowed to retaliate against employees should an employee file a complaint against the employer. For example: If an employee files a complaint because they feel they were not promoted because of their race or sexual orientation, the employers may not terminate the employee for filing the complaint.
Public Policy: A public policy exemption prevents employers from terminating employees for reasons society would deem unjust. Therefore, lawmakers review state statutes to determine what would be “considered public policy.” For example: Under New Mexico law, employees may seek workers compensation, which is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment; they may not be fired for claiming workers comp.
Currently, New Mexico is on the higher end of unemployment at 4.2%. The highest is 5.7% and the lowest is 2.0%.
New Mexico has an income tax rate that ranges between 1.7-5.9% and a state sales tax of 4.88%. However, New Mexico has a Gross Receipts Tax (GRT), which is based on total revenue rather than total sales. Although sellers or service providers pay Gross Receipts Tax (GRT), it is common practice for businesses to pass the GRT onto the purchaser by either stating it on the invoice or by combining tax with the selling price of the good or service.
The Gross Receipts Tax rate ranges from 4.875% to 8.9375% and varies throughout the state of New Mexico because the total GRT rate combines state, county and, when applicable, municipality taxes based on the location of the business.
New Mexico residents are seemingly less likely to bank compared to the average American. 10.9% are unbanked, meaning they do not have a bank account.
New Mexico housing market
As the most populous county in New Mexico, Bernalillo County retains 671,586 residents. Bernalillo County is home to Albuquerque, the most populous city in the state. For comparison, Santa Fe County, the third-largest county and home to the capital of New Mexico, has a population of 155,956.
Fun fact: Breaking Bad, an AMC television drama starring Bryan Cranston, was shot in Albuquerque. As a result, the city has become somewhat of a tourist spot for diehard fans of the show.
Furthermore, with an influx of remote work opportunities on the rise, it is no surprise that more people are relocating to New Mexico. Along with remote work, high housing costs in massive labor markets in metropolitan cities like Manhattan and San Francisco has resulted in individuals taking advantage of more affordable housing markets. The smaller populations and large open spaces are key factors in why people choose to relocate.
An influx of out-of-towners in New Mexico, who can make larger offers for homes, has caused Albuquerque to face housing shortages. Due to increased demand and fewer vacancies available, low-income residents are struggling to meet expensive rental rates.
New Mexico offers a homestead exemption of $150,000.
Median monthly owner costs including mortgage: $1,457
Median rent payment: $966
For renters who are finding it challenging making rental payments, refer to New Mexico’s emergency rental assistance program for support. And for those seeking mortgage relief, New Mexico offers a lending hand through their “Keep Your Home” program.
Talk to a HUD-certified housing counselor to get help with the housing challenges you’re facing
CNBC reported in 2024 that the average New Mexico resident would need about $54,163 a year to retire. A 20% comfort buffer ($10,833) is recommended. That means the target for a comfortable retirement in New Mexico would be about $64,995 annually.
For the retirees relying on social security for most of their income, it is unsurprising to see residents relocating to more affordable areas. Therefore, residents of metropolitan areas like Albuquerque and Santa Fe are moving to more affordable neighboring cities. Or they are venturing off to Mexico where the US dollar holds more weight compared to the Mexican peso.
Average New Mexico insurance premiums
As is the case with most states across the U.S., New Mexico operates under a fault-based system for car insurance. Drivers pay an average of $2,331 annually for auto insurance premiums. That makes it important for injury and property damage victims to have proof of liability to be compensated for their losses.
New Mexico’s fault-based accident system allows you to seek compensation in three ways:
You can file a claim with your insurer who then proceeds against the at-fault party
You may file a claim with the responsible driver’s insurance provider
Or you are able to institute a car accident lawsuit for damages in court
Even though average annual home insurance premiums are relatively similar at $2,304 a year, the average health insurance premiums are higher at $6,886 annually.
Helpful resources for New Mexicans facing hardship
According to the Census Bureau, New Mexico is home to 136,662 veterans. These resources are available to help Veterans that are facing unemployment, homelessness, and other hardships.
To file a new claim, speak with a customer service representative, or to make weekly certifications may be done through the toll-free number 1-877-NM-4-MY-UI (1-877-664-6984).
How Consolidated Credit helps New Mexico residents find debt relief
In 2024, Consolidated Credit provided free credit counseling to 1,098 New Mexico residents. Of those, 43 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $9,786). The others received a free debt analysis and complementary budget evaluation, and they were directed to the right solution for their situation to get out of debt as quickly as possible.
We’d also like to congratulate the 47 New Mexico residents that got debt-free last year with the help of Consolidated Credit!
Relief options to consider if you’re in debt in New Mexico
If you have good credit and need to pay off credit card debt and other non-secured debts, a debt consolidation loan is an excellent option for you. By having good credit, you’ll get a low-interest rate for a loan that refinances all of your debt with one monthly payment. This will help you get out of debt faster, and you may wind up paying less each month. This is an excellent solution for New Mexico residents with high debt and a good credit score.
New Mexican homeowners may qualify for a home equity loan or a home equity loan of credit, sometimes called a (HELOC). These types of loans use the equity in your home. Due to rapid home value increases, many residents have equity in their homes. The loan allows you to borrow against the equity in your home and pay off credit cards and other debt. This is not a step to take lightly because you could lose your home in foreclosure if you can’t make the payments. If you are considering borrowing against your home, call 1-800-435-2261 to speak with a HUD-certified housing counselor to make sure this is a safe option for you.
Consolidated Credit helps New Mexico residents with counseling programs that identify the best way to get out of debt after considering their situations. New Mexico residents can get a confidential debt and budget evaluation from a certified credit counselor. Afterward, the counselor will go over the available options and which course of action best meets a person’s needs and goals.
In New Mexico, as in other states, it’s best to avoid bankruptcy. If you can afford to repay all that you owe to avoid credit damage but can’t do it on your own, a debt management program can help. You enroll through a credit counseling agency. The agency will work with your creditors to reduce or eliminate interest and work out a payment schedule. Qualifying New Mexicans can get out of debt in 36-60 payments, on average.
Another option for New Mexico residents is debt settlement. With debt settlement, you settle your debt independently or with the help of a debt settlement company. In this program, you agree to pay your creditors a portion of what is owed. This will damage your credit rating because you are not paying on the terms you first agreed to. Late payments, which are often part of this program, will hurt your credit rating for seven years. Even with those negatives, this can be an excellent program for New Mexico residents with overwhelming debt. It can help you avoid bankruptcy.
If you’re curious how we can help you, below, you will find a few case studies from clients that we’ve helped in New Mexico. If you’re facing challenges with debt, call us at (844) 276-1544 to receive a free debt and budget evaluation from a certified credit counselor.
Don’t let high interest rate credit card debt hold you back! Talk to a certified credit counselor to understand your options for debt relief
“Thank God for this service. Being a single Mom plus putting 3 children through college left me in a financial quagmire that I thought I would never be free of. Now I have one payment left.
”
Where
she
started:
Total unsecured debt: $52,321.00
Estimated interest charges: $30,507.29
Time to payoff: 14 years, 10 months
Total monthly payments: $2,092.84
After DMP enrollment:
Average negotiated interest rate: 9.74%
Total interest charges: $10,463.96
Time to payoff: 3 years, 11 months
Total monthly payment: $1,339.00
Time Saved
10 years, 11 months
Monthly Savings
$753.84
Interest Saved
$20,043.33
Ready to see if you qualify for debt relief through Consolidated Credit? Talk to a certified credit counselor now for a free debt and budget evaluation.
This content is based on accredited financial data gathered from reputable sources, such as government websites, credit bureaus, and nonprofit organizations. All articles are written by certified credit counselors and fact checked by certified financial experts.
Our team strives to provide educational content that fully informs readers of all their options as they relate to debt, credit and personal finance. Our goal is to give readers the information they need to make informed financial decisions on their own.
This article contains references that provide sources for the financial data we used. The numbers in brackets [1,2,3] are clickable links to each data source or study referenced.
