debt reduction

Debt reduction is the process of decreasing the total amount of a delinquent payment, also known as bad debt. It represents a strategic approach to helping a debtor to clear their defaults easier and in a more convenient manner. The strategies for reducing debt include reorganization of debts (changing liabilities’ contract terms and conditions) and refinancing (acquiring funds for a new loan to clear all existing old debts), freezing of additional charges and interest fees, or substituting debtor’s monthly payments with only one single transaction or reducing monthly interests.