Debt consolidation is when you have multiple debts and you combine them into a single debt. This can be desirable for three reasons:
To simplify your debt payments into a single payment
Restructure your payments for a longer period
Obtain a lower interest rate
While debt consolidation and refinance tend to work hand-in-hand, however they do not need one-another to utilize their benefits. Many debts can be refinanced without consolidation, such as mortgages or car loans. You may be eligible to apply for a new loan with a lower interest rate or a different repayment term to better fit your financial circumstances.