Being in debt is never a good situation for anyone. Effectively managing that debt means to make the best use of your money in order to repay everything you owe. However, there are times where you can explore other options for making good payments and possibly avoiding further debt. Of course, depending on what you owe, and who you owe it to, each option will have benefits and detriments that can determine if that option is good for you or not. One of the most widely used ways of helping borrowers reduce their debt and manage their finances easier is to refinance a loan.Refinancing is the process of talking to the creditor about the loan and having the terms of repayment redone to benefit your situation. This process can change your monthly payment amount, how much interest is charged, late fees, the day that the payment is due each period, and in some cases, can even reduce the total amount you will pay out over time.Typically, you hear about refinancing with mortgage loans. Many home owners will refinance their home loan to make it more affordable, especially if they have experienced an adverse change in their income. This is not exclusive to a home loan, though. Auto loans are also very popular for people to refinance. A vehicle can take a long time to pay off, and those who have trouble making the payments will request a refinance on their auto loan in order to make payments and not sink into more debt and have the vehicle taken away due to non-payment.It is important to know when the best times to refinance are. Take a look at your debts. Do any debts stick out there that is harder on you than you think it should be? It may be how much you repay each month, or the interest itself that is making the loan much harder to pay off. In either of these cases, you may want to consider refinancing. Also, many people feel that they can simply use another day of the month in which to pay, especially if their income situation has changed and they are having difficulty making payments.Refinancing is a solution that many borrowers pursue when managing their income just seems that much harder because of a few problems with their current repayment plans. If your feel that refinancing may help you out with your debts, take a look and see what it can do for you.