What Is Debt Relief?
Debt relief involves the reorganization of a borrower’s debts to make them easier to repay. It can also give creditors a chance to recoup at least a portion of what they’re owed. Debt relief can take a number of forms, including reducing the debt, lowering the interest rate on it, or extending the period for repayment.
Creditors are often willing to consider debt-relief measures when the alternative is total default by the borrower. Those eligible for debt relief can range from individuals and small businesses to large corporations, municipalities, and even entire nations. This article focuses on individuals.
Key Takeaways
- Debt relief refers to measures to reduce or refinance debt in order to make it…