How to Consolidate Debt With a Refinance Loan
If you're juggling multiple loan repayments, credit card balances, or other debts, it might be time to consider consolidating your debt with a personal loan.
In simple terms, debt consolidation means combining multiple debts into one loan.
Instead of keeping track of several repayments, interest rates and payment dates, you make a single monthly repayment making your finances easier to manage, subject to eligibility and the terms of your existing borrowing.
With an Avant Money Refinance Loan, this means applying for one new personal loan that can be used to repay existing borrowing, helping you bring multiple repayments together in one place.
In this guide, we'll explain how to consolidate debt with a personal loan, how a Refinance Loan can help, and what to consider before deciding whether debt consolidation is worth it for your circumstances.
What is debt consolidation?
Debt consolidation is the process of combining two or more existing debts into one new loan. For example, you might have:
- A personal loan
- A car loan
- A credit card balance
Rather than managing separate repayments for each of these, a Refinance Loan can be used to pay off the existing debts. You then repay the new loan through a single monthly payment.
The main aim is not necessarily to reduce the amount you owe. Instead, it's often about making your finances simpler and easier to manage.
How does a Refinance Loan work?
A Refinance Loan is a personal loan designed to help you replace existing borrowing with one new loan, so you can manage a single repayment instead of several separate repayments.
The new loan is typically used to clear the balances on your existing debts. Once those debts are paid off, you'll only have one loan to manage, with one monthly repayment and one repayment schedule to keep track of.
For example: Sarah has:
- A €10,000 home improvement loan
- A €5,000 personal loan
- A €12,000 car loan
Her total borrowing is €27,000.
Rather than making three separate repayments each month, she could use a Refinance Loan to consolidate these debts into one loan with a single monthly repayment. Every situation is different, but many people find that this approach makes budgeting and financial planning easier.
To learn more about how personal loans work, you can read our Personal Loans Guide.
What are are the benefits of consolidating debt?
Debt consolidation can offer several advantages when used in the right way.
Simple money management
One of the biggest benefits is how easy it makes your repayment. Instead of remembering multiple payment dates and repayment amounts, you'll only need to manage one monthly repayment. This can make it easier to stay organised and keep track of your borrowing.
A clearer view
When debts are spread across different lenders and products, it can sometimes be difficult to see the full picture. Consolidating debt into a single loan can make it easier to understand:
- How much you owe
- How long it may take to repay
- What your regular monthly commitment is
Easier budgeting
With one repayment to budget for each month, it may be easier to plan household spending, savings goals and other financial priorities.
Is debt consolidation worth it?
One of the most common questions people ask is: Is debt consolidation worth it? The answer depends on your individual circumstances. Debt consolidation may be worth considering if:
- You have multiple debts with different repayment dates
- You want to make your monthly finances easier to manage
- You find it difficult to keep track of several loans or balances
- You're looking for a more structured repayment approach
However, the worth of debt consolidation depends entirely on each individual person. Before applying, it's important to review:
- The total cost of borrowing
- The loan term
- Any fees or charges that may apply
- Your ability to meet repayments
What should you consider before consolidating debt?
Before taking out a Refinance Loan, it's worth asking yourself a few key questions.
How much debt do you currently have?
Start by listing all existing borrowing, including:
- Outstanding balances
- Monthly repayments
- Interest rates
- Remaining loan terms
This helps you understand your current position and determine whether consolidation could be beneficial.
Can you comfortably afford repayments?
Any loan should fit within your budget. It's important to ensure that repayments remain affordable both now and in the future.
What are your financial goals?
Different people choose debt consolidation for different reasons.You may want to:
- Simplify your finances
- Reduce the number of repayments you manage
- Create a clearer repayment plan
Understanding your objective can help you decide whether a Refinance Loan aligns with your needs.
How to apply for a Refinance Loan
Applying for a Refinance Loan is generally similar to applying for a personal loan. The process usually involves:
- Reviewing your current debts
- Deciding how much you need to borrow
- Completing an application
- Providing any required supporting information
- Receiving a lending decision
If you're considering your options, our guide on How to Get a Loan with Avant Money explains the application process in more detail.
Why some Irish borrowers choose a Refinance Loan
Many borrowers choose a Refinance Loan because it can help bring multiple existing debts together into a single repayment. For people managing several financial commitments, having one loan instead of multiple repayments can make day-to-day money management simpler and more convenient.
When exploring your options, it's important to compare lenders carefully, understand the terms of any loan and ensure that the solution is suitable for your individual circumstances.
Should you refinance your loan with Avant Money?
If you’re considering whether a Refinance Loan could work for you, Avant Money offers its best fixed rate on Refinance Loans over €30,000.* You can learn more about the Avant Money Refinance Loanor use our Loan Calculator to see what your repayments could look like before you apply.
*Rates and loan terms are correct as of 28th August 2026 and are subject to change (Source: CCPC.ie, not including Green Loans). Maximum APR (Annual Percentage Rate) is 19.9%. Minimum loan term is 12 months and maximum term is 120 months, loan terms vary depending on the purpose of the loan, terms greater than 84 months up to a maximum of 120 months are only available for Refinance and Home Improvement Loans of €20,000 to €75,000.
Lending criteria, terms and conditions will apply. Personal Loans are available to residents of the Republic of Ireland over the age of 18 and are subject to repayment capacity and financial status. Proof of income and a credit reference agency search will be required to help us approve your request. Personal Loans are unsecured and not available for business purposes, house purchase or investment.
Representative example: On a €30,000 loan over 5 years, at a fixed rate of 5.9% (6.1% APR) you will pay €578.59 a month. The total cost of credit would be €4,715.41 and the total amount repayable would be €34,715.41.
Rate offered takes into account financial profile and credit history.
Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit report, which may limit your ability to access credit, a hire-purchase agreement, a consumer-hire agreement or a BNPL agreement in the future.
Warning: This new credit may take longer to pay off than your previous credit. This means you may pay more than if you paid off your credit over a shorter term.