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What is the difference between debt consolidation and refinancing?
What is the difference between debt consolidation and refinancing?

Common debt consolidation questions

Monisha Begum avatar
Written by Monisha Begum
Updated over a week ago

Debt consolidation and refinancing are very similar, as in both cases, existing debt is transferred into a new debt so the borrower can take advantage of things like a better interest rate, lower repayments or a more flexible loan term.

This is usually referred to as refinancing if only one debt is involved, such as a property loan or other high value asset. Debt consolidation normally refers to multiple loans being refinanced, but this isn’t always the case – borrowers may also use a Harmoney debt consolidation loan to “refinance” a single debt.

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