How much can I reduce on the loan interest?

According to New Mexico's payday lending laws, no lender can offer a loan, if its total principal amount and fees exceeds 25% of the consumer's gross monthly income and the combined costs of other payday loans. So, if your lender is charging more than the stipulated cap, you can have a talk with your lender to lower the interest rate or consult an attorney for legal help.

For interest rate reduction, you can negotiate for better rates. MOD NOTE...if loan illegal, you do not have negotiate anything.

The lender is definitely violating the payday loan laws in your state. Who is this lender by the way? Threaten to file a complaint to the State Attorney General if the lender doesn't agree to slash interest rate.