Significance

• If you refinance an unsecured loan you can receive new terms. One of the changes could include a longer term that lowers your payments.
  
  

Interest Rate

• Sometimes when you restructure your unsecured debt you are able to get a lower rate of interest. When interest rates are lower, you save money.
  
  

Types

• Usually unsecured debt comes with less favorable terms such as a higher rate of interest. If you restructure your unsecured debt so that it's secured, the terms of your loan could improve.
  
  

Benefits

• Another option for restructuring your unsecured debt is combining two or more loans together which enables you to receive more favorable terms. You can pay one debt easier than two or more.
  
  

Time Frame

• You can also restructure your unsecured debt, so the term is shorter. When you have a shorter term your payments are larger, but you will get out of debt a lot faster.