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What About Refinancing?

A creditor or a finance company may try to “refinance” the debt. Refinancing involves replacing one or more of the debts with a new one. It is often offered as a way of dealing with a delinquent debt or a way to consolidate several debts into “one easy payment”, as some creditors like to say. This may at first seem appealing but it might not always be in the best interest of the debtor, because the new debt may have many hidden disadvantages.

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