Debt refinancing: Refinancing involves renegotiating the terms of your existing loan. It is usually used for large loans, like mortgages, car loans, or student loans. Refinancing can also replace a single existing loan with a new one with better terms.  Credit card consolidation: Consolidation rolls several debts into a single new one. You use a new line of credit to pay off two or more existing debts. Refinancing is a one-to-one replacement. Debt consolidation replaces two or more debts with a single new credit line.