Getting into debt seems to get easier and easier to do.
That's how most financial institution make money off of the public, by getting and keeping them in debt. These entities grow rich on fees and interest.
Take the big automakers. It came out years ago that the reason they offer in-house financing is because they make the bigger profit not on the sale of the vehicle but on the interest they charge you to finance said vehicle.
Let that sink in for a moment......
With most banking institutions they only way they will give you "free" checking accounts is if you keep X amount of dollars in either your checking or one of their other financial products(savings, money market, cd, stock portfolios, etc.). But then again, your checking account isn't "free" really, is it? Since the bank has access to the money in your financial product to move around, lump it with other folks' money on deposit and shuffle it all around(as one big freaking pile of cash!)to turn a profit for themselves...something a lone investor/person with capital can't possibly do on that massive level.
Businesses encourage John Q Public to go into debt in many ways because it puts money into their corporate pockets.
Corporations love debt and use any trick they can think of to keep you mired in debt.
Refinancing schemes are one way they do this.
Refinancing can be a great way to get out of debt. If you can't handle the payments of your debt by consolidating and restructuring them you can A-make them more manageable for your income level and B-lower the rates in a refinancing plan.
But be very careful!
Yes, you can lower the rates but if you don't see the "extra" cash left at the end of your month(if there is any extra cash) as "extra" and spend it on wants. You are just inflating your lifestyle and won't actually extract yourself any faster. And if you use that "extra" cash to extend yourself into a new financing scheme(put something on time and use the "extra" cash for a downpayment)then you have just mired yourself further into your quicksand of debt.
Also, most refinancing schemes while they lower your interest rate also extend how long it will take to pay off that debt. Don't fall for this ploy either.
The only way I would ever refinance a debt(if I had a debt and my back was against the wall)would be to get a 0% balance transfer credit card and move debt from one instrument to that one. Of course all 0% balance offers do have an end date by which the 0% interest terminates and usually balloons up quickly to a large rate of interest you are required to pay on the remaining balance so watch out for that(and some refis also make you responsible for all the interest you thought you got out of IF you had paid the loan off before the 0% rate expired). And don't EVER do a 0% balance transfer and then use that credit card to make new purchases! If you do, you have just negated any financial good that transfer did you and you'll be in worse financial shape very quickly.
There are folks who don't "get it" at first, but then wake up one day and realize, "WTF!?! I am in debt and how do I get out?!"and make plans to extract themselves from said debt.
Most people "gets it" about debt at some point in their adult financial life.
But then there are those other folks.
You know.....the ones who get into various types of debt and then have an epiphany one day and get serious about extracting themselves from their predicament.
But they go overboard and tighten down their spending too much and start throwing all their money at their debt.
And then at some point they just can't stand not spending on something they "want" another minute because they are too restrictive and go off the deep end and go spend with wild abandon. And usually this wild abandon period equates to buying something big like a car, a pool, an RV, a pricey cruise, etc.
And when they do this they usually undo any good their previous financial fasting has done them and then they are right back to the same level of debt as before or sometimes a larger level of debt.
Then the guilty or remorse or whatever you want to call it sets in and they severely tamp down their spending again and throw themselves into debt pay down and the cycle starts all over again.
I have seen a few folks online who fit into this category. They cycle in and out of debt or cycle from moderate debt to massive debt to moderate debt but never truly get out of their debt.
Beyond their own self-defeating "get out of debt disorder" add in that emergencies happen that also need their ready cash at some point in the cycling and basically nothing ever changes in their lives beyond the change in the level of debt they are mired in.
They will never break the debt cycle until they deal with the deep seated psychological reasons behind their money/debt issues. Some issues are easier than others to address but this type of serial debtor needs to take a good hard look at why they are in debt and can't get out.
Are their debts just too large to get out from under?
Do they not understand the difference between a need and a want?
Can they not say no to themselves or others when it comes to money?
Do they have no self-control with their finances?
Are they not mature enough to understand delaying gratification?
Do they need some rudimentary budgeting lessons?
And add a spouse or significant other who isn't on the same page with money, and the psychological games couples play about finances, and there is just more baggage to deal with to break out of this cycle of serial debt.
This ARTICLE may explain it better than I can.
It's never too late to face up to your finances and change how you deal with your money if what you have been doing isn't working for you.
Money is a great tool to get you where you want to be in life......IF you use it wisely.
Used recklessly and it can make your life a living hell.