Debt restructuring strategies

Debt restructuring involves changing the terms of a borrower’s existing debt to make repayment more manageable. This can include extending the repayment period, reducing the interest rate, or settling for a lower total payment. The goal is to improve cash flow and avoid default or bankruptcy. It benefits both parties: the borrower gets relief, and the lender increases the chance of recovering the loan. Essentially, it's a strategic adjustment to debt agreements aimed at restoring financial stability for the borrower while satisfying the lender.