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 Ohio, 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 lead to lower monthly payments, making it easier to manage finances. Debt consolidation is a common reason for refinancing, where individuals take out a single loan to pay off multiple debts, such as credit card balances, resulting in one monthly payment instead of several. The terms and availability of refinancing options are influenced by the borrower's creditworthiness, the value of collateral (if applicable), and market conditions. Ohio's laws do not specifically regulate the act of refinancing, but lenders must comply with state and federal lending laws, including the Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA), which ensure fair and transparent lending practices. It is advisable to consult with an attorney or a financial advisor to understand the implications of refinancing and to find the best option tailored to one's financial situation.