There are many ways in which Loans can be categorized. When we say Loan, we are talking about big Loans, not payday Loans. If we categorize them based on their nature, there are 4 types: Mortgage Refinance Loans, Home Equity Loan, Debt Consolidation Loans and Personal Loans.

Whatever the type of Loan, the process involves certain procedural steps.

A Home Equity Loan is a type of Loan in which the borrower is expected to repay a fixed amount of money over a fixed time period. This is confirmed by a `line of credit', an agreement that is signed by the borrower. However, there is a flexibility option in which the borrower can pay interest only on the amount used.

A Debt Consolidation Loan is the best option if the person is repaying several different Loans simultaneously, such as numerous credit card balances. The debt consolidation process combines all these into one Loan. In other words, the person gets one monthly statement and pays only once a month. Though debt consolidation is a good option, there are limitations. If the Loan is stretched out over a longer time period, the interest may become higher.

Next is the Personal Loan. It includes any large amount of Loan meant for higher studies [Student Loans], starting a business, or other options.

Whatever the type of Loan Refinance, credit situation tracking remains of fundamental importance. Though this can be done by one's self manually, or by hiring a Loan professional, there are excellent alternatives available today, with many computer tools such as Microsoft Money 2005 Deluxe. They come with price tags in the $30 - $60 range.