Depending on your situation and credit score, refinancing your loans may help with your payments. Refinancing essentially means that you take out another loan to pay off your current one. This may allow you to get a lower interest rate and monthly payment. But there are also drawbacks. Often, in order to lower your payment, you’ll need to change the term of your loan, making it longer. That means that while your monthly payment may go down, the amount that you paid for the loan all together will go up. There also may be fees associated with refinancing, depending on the type of loan. For example, if you refinance a mortgage, you may need to pay closing costs, fees for paying the loan off early, and application fees. Finally, trying to refinance can impact your credit, and depending on the terms of the current loan, you may not be able to get a more affordable one. If you think refinancing may help your situation, talk to your lender about your options.
If you’re feeling overwhelmed and believe you may benefit from individualized help, it may be worth hiring a professional or working with a non profit that offers debt relief services such as a financial advisor or a debt counselor. There is no shame in getting help and actively improving your situation. These professionals can assist you in making a plan and walk you through strategies that will work best for your situation. But be sure to choose someone that you trust. Research various companies or individual counselors to learn more about their background and experience. Above all else, you should only agree to work with someone if you feel comfortable with the advice that they give you. To learn more about finding a reputable credit counselor, check out this article from the FTC .