One common way that individuals try to pull out of debt is through refinancing. Refinancing requires individuals to take out loans that pay their other loans in full. There are several advantages and disadvantages to this, and it is important to note that certain pros and cons may not apply to everyone.Among the most positive outcomes of refinancing is debt consolidation. Individuals can cut down the number of monthly payments that they have, which often means a lower monthly payment. A lower monthly payment is key in refinancing, and there are several ways to obtain one.The most common way to secure a lower monthly payment is to look for a refinancing loan that has a lower interest rate than your current loan. Though the overall loan amount will be more, a lower interest rate may result in lower monthly rates.A lower interest rate alone may not lower the amount that you owe each month Another way to lower payments is to agree to loan terms that stretch out the repayment period. Though there may be a longer debt period, stretching out a loan can drastically reduce the monthly payment.All of these actions may have negative consequences though. In some cases, refinancing will lower monthly payments by a negligible amount. When this is the case, debts may not become any more manageable.Worse yet, individuals will be stuck with the loan for a longer period, which can cause more financial strains. Ultimately, an individual may be better served by declaring bankruptcy and wiping out his or her debts entirely.