2 min read
Definition
Debt restructuring means agreeing new terms on existing debt — extending the term, adjusting the schedule, or reorganising several facilities — to ease repayment. It differs from refinancing (a new loan replacing an old one) in that the existing lender often stays involved.
Why it matters
Restructuring is a constructive route out of strain, preferable to missed payments. A lender will often agree to it rather than face a default. See loan arrears and consolidating debt.
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