Which debt relief option typically helps consumers restructure their debts rather than eliminating them?

The answer focuses on consolidation loans, which are specifically designed to help consumers manage and restructure their debts rather than outright eliminate them. This option allows individuals to combine multiple debts into a single loan, often with a lower interest rate or more favorable payment terms. By consolidating their debts, consumers can simplify their payments and potentially reduce the total interest they pay over time.

In doing so, they can create a more manageable repayment plan tailored to their financial situation. This approach emphasizes the importance of restructuring debt to create a sustainable path to repayment, rather than the more drastic measures seen in bankruptcy or debt settlement, which often aim at reducing or eliminating total debt owed. Credit counseling and debt management plans also focus on restructuring payments but can involve ongoing payments to credit counseling agencies, while consolidation loans provide a more direct means of managing debts through a single loan.