Navigating debt relief options

Accumulating large amounts of personal debt often happens out of necessity as people are forced to take out loans and lines of credit to make large purchases and manage everyday expenses. At a certain point, however, the situation can become unmanageable and individuals may be forced to consider making significant lifestyle changes to address their financial challenges. Fortunately, Miami, Florida, residents have several debt relief options to choose from, and each presents its own unique advantages and drawbacks.

Consolidate debt

The debt consolidation process essentially involves using one loan or line of credit to pay off another loan with higher interest rates. By paying down high-interest debts, individuals can save money and simplify their monthly bills. One factor to consider before consolidating debts is that the process still involves taking out a loan that will have to be paid off.

Source: recordnet.com, “Debt-relief firms have dubious record,” Anya Kamenetz, Feb. 2, 2014