Debt rescheduling is the lengthening of the time of

debt Debt is an obligation that requires one party, the debtor, to pay money Loan, borrowed or otherwise withheld from another party, the creditor. Debt may be owed by a sovereign state or country, local government, company, or an individual. Co ...

repayment by restructuring the terms of an existing loan.

Types of resecheduling

retail banking Retail banking, also known as consumer banking or personal banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking (corporate ...

, the debt rescheduling can be applied for

personal loans In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the te ...

given to individuals as education loan,

consumer credit Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...

mortgage loan A mortgage loan or simply mortgage (), in civil law (legal system), civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners t ...

and loans given for making investment in financial assets such as equity shares,

debenture In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowle ...

, and

bond (finance) In finance, a bond is a type of Security (finance), security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to provide cash flow to the creditor (e.g. repay the principal (i.e. a ...

. In

North America North America is a continent in the Northern Hemisphere, Northern and Western Hemisphere, Western hemispheres. North America is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South Ameri ...

and

Europe Europe is a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...

, there are the portals which offers loan rescheduling/restructuring/consolidation via peer-to-peer lending marketplace such as

Prosper Marketplace Prosper Marketplace, Inc. is a San Francisco, California-based financial services company. Prosper Funding LLC, one of its subsidiaries, operates Prosper.com, a website where individuals can request to borrow money, open a credit card, or invest ...

and LendingClub.

Approaches;

* Reduce payment amounts by extending the payment period and increasing the number of payments. * Pause payments by adding

debt moratorium A debt moratorium is a delay in the payment of debts or obligations. The term is generally used to refer to acts by national governments. Moratory laws are usually passed at times of special political or commercial stress: for instance, on severa ...

period in a loan term during which the borrower is not required to make any repayment but it increases the amount of the monthly instalments.

References

Rescheduling {{econ-term-stub

Types of resecheduling

Approaches;

See also

References