Many people who are struggling with debt may engage in refinancing options. These options can help relieve debt. However, they may also increase the borrower's financial risk. 

For instance, if a borrower is struggling to make mortgage payments, he or she may take out a second mortgage. While the second mortgage may appear to offer a better deal in terms of payment and loan length, it actually might result in a higher effective interest rate. 

If the effective interest rate is higher, then the borrower is likely bearing more financial risk than he or she did by just having one mortgage. 

If you or anyone you know is considering filing for renegotiating your debt, contact the Austin debt negotiation attorneys of Slater Kennon LLP, at 512-338-1100.