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 Georgia, as in other states, refinancing a debt involves taking out a new loan to pay off an existing one. This process is often sought by borrowers to take advantage of lower interest rates, better payment terms, or to consolidate multiple debts into a single payment. The terms of the refinancing, including the interest rate and repayment schedule, are subject to negotiation between the borrower and the lender. It's important for borrowers to consider the costs associated with refinancing, such as origination fees, prepayment penalties on the old loan, and the total interest to be paid over the life of the new loan. Georgia's laws do not prohibit debt refinancing, but lenders must comply with state regulations, including those related to licensing and disclosures. For example, the Georgia Fair Lending Act (Ga. Code Ann. §§ 7-6A-1 to 7-6A-8) regulates home loans and includes provisions to protect borrowers from predatory lending practices. Borrowers considering refinancing should carefully review the terms of the new loan and may wish to consult with an attorney to ensure that the refinancing is in their best financial interest.