Does it make sense to refinance at a higher interest rate?

Didier Malagies • May 1, 2023

There may be some situations where it makes sense to refinance at a higher interest rate in order to consolidate debt. For example, if you have multiple high-interest credit card debts and can only qualify for a personal loan with a slightly higher interest rate, consolidating your debts with the personal loan may still be beneficial if it allows you to pay off your credit cards and avoid high-interest charges.


Ultimately, the decision to refinance at a higher interest rate for debt consolidation will depend on your individual circumstances and the terms of the loan. It is important to carefully evaluate the interest rate, fees, and repayment terms of any loan offer before making a decision.



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