{"id":2777,"date":"2021-10-23T07:22:00","date_gmt":"2021-10-23T07:22:00","guid":{"rendered":"https:\/\/asiaposts.com\/?p=2777"},"modified":"2022-08-15T07:23:31","modified_gmt":"2022-08-15T07:23:31","slug":"difference-between-debt-restructuring-and-refinancing","status":"publish","type":"post","link":"https:\/\/asiaposts.com\/difference-between-debt-restructuring-and-refinancing\/","title":{"rendered":"Difference Between Debt Restructuring and Refinancing"},"content":{"rendered":"\n
Your particular financial status, personal needs, and what choices are truly realistic for you based on your circumstances (such as your lenders, how much debt you have, and other variables) will determine whether you can or should restructure or refinance your debt. Not every loan can be restructured, as this is entirely at the discretion of the lender, and consolidating or refinancing your debt is not always advantageous to you.<\/p>\n\n\n\n
What is the Difference between Debt Restructuring and Debt Refinancing?<\/strong><\/p>\n\n\n\n
Debt restructuring and debt refinancing\/consolidation are two of the most popular debt management options offered. Debt consolidation and debt restructuring have many similarities in terms of decreasing monthly debt payments and overall debt costs, but they are not the same type of debt management relief. The following are the key distinctions between the two:<\/p>\n\n\n\n
What is Debt Restructuring?<\/strong><\/p>\n\n\n\n
Loan restructuring is the process through which a debtor and their creditor agree on an amount that the borrower can pay back rather than the debtor being forced to pay back the whole debt. A debt restructuring payment may frequently need to be made in one lump amount or a limited number of installments, rather than being permitted to be paid back over the length of time that the original debt arrangement was for, which is a trade-off of debt restructuring. <\/p>\n\n\n\n
What is Refinancing?<\/strong><\/p>\n\n\n\n
This debt management application allows you to consolidate numerous obligations into a single liability. This simplifies debt management since the borrower now only needs to make one payment to a single financial institution rather than several payments, which are frequently paid to various financial institutions. In order for debt consolidation to have the greatest influence on your financial stability, the single new obligation that you take on should have better terms than your prior debts, such as a lower interest rate or a longer-term length. If you are still at the crossroads regarding debt consolidation, make sure to use a loan calculator to calculate your EMI<\/a> one last time before reaching any conclusion.<\/p>\n\n\n\n