Debt relief refers to the partial or total forgiveness of debts owed by individuals or entities. It can take various forms, including debt cancellation, restructuring, or consolidation, and is often implemented to provide financial relief to those experiencing economic hardship or to stimulate economic growth.
Debt relief can offer several potential benefits. It can reduce the financial burden on individuals or entities, allowing them to redirect resources towards productive activities. It can also help to improve credit scores, expand access to credit, and stimulate economic activity. Historically, debt relief has been employed during economic downturns or financial crises to mitigate the negative impacts on borrowers and the broader economy.