Debt Consolidation Loan vs. Debt Refinancing Loan

November 8, 2022

By : Quick Insurance Guru

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Debt consolidation and debt refinancing are two methods of debt repayment.

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What is debt consolidation?

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Debt consolidation is combining debts in a single large loan. 

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Debt consolidation is a way to streamline your debt repayment process. 

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Larger loans have terms of repayment which may be acceptable. 

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Debt consolidation can help you pay your credit card debt.

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Before taking a debt consolidation loan make sure you know the fees you may incur.

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What is debt refinancing?

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In traditional loans, debt refinancing is a form of borrowing in which the borrower will get more favorable repayment conditions.

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Refinancing a loan reduces the total loan interest.

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Your credit report may affect your credit rating during refinancing.

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