restructuring of debt

Debt restructuring is the process where an individual or organization renegotiates the terms of their existing debt to make it easier to manage. This can involve extending the repayment period, reducing the interest rate, or even cutting the total amount owed. The goal is to improve financial stability by making payments more affordable and preventing default. It’s often a strategy used during financial difficulties, allowing borrowers to avoid bankruptcy and continue operations while fulfilling their obligations in a more manageable way.