The last thing you want to do if you plan on refinancing your loans is end up in a worse situation than when you started. And unfortunately this is how most people end up.

To refinance your loans successfully you need to work out some plan of attack. So, to show you the best way to refinance your debt let me introduce you to our fictitious case study couple, Ira and Jean.

Ira and Jean recently got married and decided to pool all their assets, bank accounts and debts. Alas, poor Ira and Jean's debts far outweighed their assets and cash.

Here's the breakdown of their current debts;

• Ira had bought his $23,000 car through the car dealerships recommended credit company paying 24.5%pa


• Jean had paid a $3000 deposit and owed her brother another $15k.


• The wedding had cost nearly $25,000 and all of had gone onto their combined credit cards. Ira's low interest card had $15,000 at 8.99%pa while Jean's 16.5% credit card contained the balance of $10k.


• Two years ago, Ira and Jean took out a mortgage for their first home and after paying a 20% deposit they now owed $300,000 over the next 23 years.


• To complicate the situation even further, Ira's business owed the Tax Department more than $20,000 in unpaid tax.

So, after some heated discussions, Ira and Jean decided to refinance their debt as soon as they could. Here's how they did it...