Should I Refinance or Consolidate My Credit Card Debt?

Should I Refinance or Consolidate My Credit Card Debt?

Deciding whether you should refinance or consolidate your credit card debt is a big step to take. Knowing which method to choose for paying off your debt can be difficult without enough information. There are specific differences between refinancing and consolidation that might make or break your preference. Costs and benefits exist for each option too and can help you with your final decision. In the event that you find yourself at risk for bankruptcy, consider contacting a Tennessee bankruptcy lawyer for guidance. 


Credit card refinancing in Tennessee means you want a fast and temporary solution to your credit card debt. This method is only temporary because the grace period is limited to 12 to 18 months depending on the bank. A grace period means you will not have to pay any interest for a short period of time. this grace period becomes initiated after you move your credit balances to a new credit card.

In other words, refinancing a credit card in Tennessee means you will be transferring your credit card debt from one or more credit cards to a new single credit card that will charge no interest for roughly 18 months. This can give you a little bit of leverage in paying off your credit card debt slightly faster than if you were charged interest. This method is especially helpful when you have debt on multiple credit cards because interest on each individual credit card can add up fast. 

Note that this method only benefits you if you transfer your debt to a credit card that comes with no interest or less interest than the interest you are being charged for your current credit cards. Some of the cons of refinancing include: 

  • Refinancing is temporary
  • Interest can raise your credit back up if you do not pay a significant portion before the grace period ends
  • Your credit score must be over 680 to qualify for no interest rates


Tennessee credit card consolidation means you will use a loan to help pay off your credit card debt faster before the interest rates spike your debt up even more. Debt consolidation loans work to simplify the credit card debts you owe into a single monthly payment. Two benefits of this option are more time to pay off your debt and lower interest rates.

Cons can come up for consolidation if you choose a loan with a higher interest rate and less time to repay the loan back than you need. The process of applying for a loan can be tedious. Overall, consolidation loans give you more time than credit card refinancing, but they do need to be paid off by a certain point.  


Escaping expensive credit card debt is no easy task for anyone. Talk to our team of lawyers in Chattanooga, Tennessee, and North Georgia if you ever find yourself struggling with debt and bankruptcy. Call Tom Bible Law today to speak with a Bankruptcy lawyer in Tennessee at (423) 690-7712 for a free consultation. Our legal team of Tennessee bankruptcy lawyers is located in Chattanooga and Tullahoma. 

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