What’s the difference between debt consolidation and credit card refinancing?

Michael Solomich
October 19, 2022
3:21 pm

Debt consolidation and credit card refinancing are both options for working with high-interest debt.Both debt consolidation and credit card refinancing can help you save money on interest, but they work in different ways.

Debt consolidation involves taking out a new loan to pay off multiple debts. You’ll end up with one monthly payment, but the interest rate on your new loan may be higher than the rates on your existing debt. Credit card refinancing involves transferring the balance of your credit card to a new card with a lower interest rate. This can help you save money on interest, but you’ll still have multiple debts to manage.

Both debt consolidation and credit card refinancing have pros and cons, so it’s important to consider your unique financial situation before making a decision. If you’re struggling to keep up with multiple monthly payments, debt consolidation may be a good option for you. If you have good credit and want to save money on interest, credit card refinancing could be the right choice.

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