Debt refinancing is the process of moving debt from one account or creditor to another account or creditor. While the amount of debt doesn’t change the terms of the debt financing do, and the process of debt refinancing is common. For example, say you have a credit card account charging a 28% annual percentage rate. You’ve decided that you don’t need the credit card account benefits, but the high balance has proved difficult to pay down. After consulting with the issuing bank, you realize you could shift the debt to another account-which doesn’t offer revolving credit-where the principal will only accrue a 12% annual percentage rate.