What is the difference between rescheduling and settlement?

Rescheduling means the obligation continues but with a new payment schedule or structure.

Key points

• Settlement is usually an agreement to address the outstanding balance and may result in debt closure under specific terms.

• Before choosing between the two, ask for the debt figures before and after the procedure, the total amount you will pay, and an explanation of its impact on your credit report and final settlement.

Source

• AAOIFI — Sharia Standards