Select your state

Creditor / Debtor

refinancing a debt

When you refinance a debt, you replace one debt with another debt. The goal of refinancing a debt is usually to secure a better interest rate and payment terms—such as lower monthly payments. You might also seek to consolidate some debts through refinancing by borrowing enough money from an existing lender to pay off some debts to other lenders (such as credit cards) and make one smaller monthly payment, rather than multiple monthly payments.

In Delaware, refinancing a debt involves taking out a new loan to pay off an existing one, often with the aim of obtaining a lower interest rate or more favorable payment terms. This can result in lower monthly payments, making it easier to manage finances. Debt consolidation through refinancing is also a common practice, where individuals can combine multiple debts, such as credit card debts, into a single loan with one monthly payment. This can simplify the repayment process and potentially reduce the overall interest paid. It's important for borrowers to consider the terms of the new loan, including any fees or penalties for early repayment, and to compare these with the current debt obligations to ensure that refinancing will provide the desired financial benefit. Consulting with an attorney or a financial advisor can help individuals understand the implications of refinancing and make an informed decision.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Creditor / Debtor

refinancing a debt

Individual & Family Legal Plan

Articles

Delaware State Code

Delaware State Code

Creditor / Debtor

refinancing a debt

Articles