Debt Rescheduling

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DEFINITION of 'Debt Rescheduling'

A practice that involves restructuring the terms of an existing loan in order to extend the repayment period. Debt rescheduling may mean a delay in the due date(s) of required payments or reducing payment amounts by extending the payment period and increasing the number of payments.

INVESTOPEDIA EXPLAINS 'Debt Rescheduling'

Debt rescheduling is one way to provide a borrower with relief when needed due to an economic downturn or other unforeseen personal event (i.e. job loss, illness etc.).

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