Debt Relief

Definition

Debt relief is when part or all of a debtor's financial obligation is forgiven or postponed by creditors. It often applies to developing countries struggling with large debts.

Related terms

Debt Forgiveness: This is when creditors decide not to require repayment from borrowers who cannot afford it.

Debt Restructuring: This involves changing the terms of existing loans such as extending payment periods or reducing interest rates.

Creditor Nations: These are countries that lend money to other nations.