DEFINITION of 'Inflexible Expense'

An expense that cannot be easily eliminated by the firm or person incurring the cost. An inflexible expense represents a recurring debt, which may affect the borrower's ability to attain higher levels of credit.

BREAKING DOWN 'Inflexible Expense'

An inflexible expense will often have a fixed amount, leaving the borrower unable to alter its payment stream. For an individual, a typical inflexible expense would be mortgage or car payments, both of which have a fixed schedule of repayment. For companies, expenses such as interest charges and employee wages represent inflexible expenses.

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