Refinancing the debt of a personal loan means the existing debt will be replaced with a new loan with the possibility of a lesser interest rate or updated terms. Refinancing is an option to consider if the rates have fallen substantially below what they are on your existing loan, ultimately saving money, or if you have a need to take a longer-term in order to afford the debt.

Anyone who struggles with repayment av gjeld (of debt) will find securing refinancing with lower rates to decrease borrowing costs so there will be less reimbursement on the overall loan. Plus, extending the term will allow the minimum repayment each month to drop, but that will increase the loan’s overall repayment cost.…