A more thorough explanation:

Definition: Debt adjustment is a process where a person's debts are combined into one and creditors agree to accept lower monthly payments or to take less money. This process is also known as debt consolidation or debt pooling.

Example: John has three credit cards with different balances and interest rates. He is struggling to make the minimum payments every month. He decides to apply for debt adjustment and consolidates all his credit card debts into one loan with a lower interest rate. His creditors agree to accept lower monthly payments, and John can pay off his debt more easily.

Explanation: In this example, John's debts are consolidated into one loan, which makes it easier for him to manage his payments. The creditors agree to accept lower monthly payments, which reduces John's financial burden. Debt adjustment helps people who are struggling with debt to pay off their debts more easily and avoid bankruptcy.