What is debt restructuring, and when is it useful?
What is debt restructuring, and when is it useful?
Debt restructuring is the process of replacing an existing loan with a new one, often provided by a different bank. This can be a very effective strategy, especially when interest rates have dropped significantly. By securing a lower interest rate, the overall financing costs can be significantly reduced, leading to substantial savings. This key benefit makes debt restructuring an attractive option for many borrowers.