Debt restructuring is a financial process where an individual or organization renegotiates the terms of their existing debt. This can involve changing the interest rates, extending the repayment period, or even reducing the total amount owed. The goal is to make the debt more manageable and to avoid defaulting on payments. This process is often used by companies facing financial difficulties, but it can also apply to personal finances. By restructuring debt, borrowers can improve their cash flow and create a more sustainable repayment plan, ultimately helping them regain financial stability.