How Debt Restructuring Works
Debt restructuring is a financial strategy that Centrepoint Finance offers to help individuals and businesses manage their debt. It involves renegotiating the terms of existing debt to make it more manageable for the borrower. This can include reducing the interest rate, extending the repayment period, or reducing the principal amount owed.
Debt Consolidation vs. Debt Restructuring
Debt restructuring can take many forms, including refinancing, debt forgiveness, or debt rescheduling. It’s important to understand the different types of debt restructuring and how they work before choosing the right one for your specific financial situation.
Debt consolidation is often confused with debt restructuring, but they are not the same thing. Debt consolidation involves combining multiple debts into one loan with a lower interest rate, whereas debt restructuring focuses on modifying the terms of existing debt.
Changes in ownership and control
Another key factor to consider is the impact of ownership and control. Debt restructuring can result in changes to the ownership or control of a company, which may not be desirable for some businesses. Centrepoint Finance can help navigate these potential changes and find the best solution for your unique situation.
Debt Restructuring vs. Bankruptcy
Debt restructuring can take many forms, including refinancing, debt forgiveness, or debt rescheduling. It’s important to understand the different types of debt restructuring and how they work before choosing the right one for your specific financial situation.
Debt Consolidation
Debt consolidation is often confused with debt restructuring, but they are not the same thing. Debt consolidation involves combining multiple debts into one loan with a lower interest rate, whereas debt restructuring focuses on modifying the terms of existing debt.
Finally, it’s important to note that debt restructuring is not the same as bankruptcy. While both involve managing debt, bankruptcy typically involves liquidating assets and discharging debts, whereas debt restructuring aims to restructure existing debts and avoid bankruptcy.
If you’re struggling with debt, Centrepoint Finance can help you explore your options and find the right solution for your needs. Contact us today to learn more about debt restructuring and how we can help you achieve financial stability.