Refinancing to consolidate debt sounds like a good idea. All your debt is in one place and you make one payment every month. Often your total monthly payment is less than you were paying when your debts were not consolidated. You may even save money in the long run if your interest rate is low. If you are going to consolidate debt by refinancing you must make absolutely sure that you are not going to rack up more debt and end up right back where you were before.