Refinancing replaces an existing obligation with new financing. Consolidation combines eligible balances into one arrangement. Either deserves a comparison with the payments you would make by keeping your current agreements.
Put both options on paper
For each existing obligation, record the payoff amount, payment frequency, remaining payments, and any early payoff charges. For the new offer, list the amount financed, fees, payment schedule, and total repayment.
Use current payoff quotes. A statement balance may not include everything needed to close an account.
Check why the payment is lower
A longer term can reduce each payment while increasing the total cost. Separate the benefit of more room in your monthly budget from any actual savings.
Confirm which debts will be paid off, who handles those payments, and what balances will remain. Include the remaining obligations when checking whether the new schedule is affordable.
