Repayment

AAA

DEFINITION of 'Repayment'

The act of paying back money previously borrowed from a lender. Repayment usually takes the form of periodic payments that normally include part principal plus interest in each payment. The other common method of repayment is a lump sum with interest at maturity.

INVESTOPEDIA EXPLAINS 'Repayment'

Failure to keep up with repayments of debt can force you to declare bankruptcy and severely affect your credit rating. Before declaring bankruptcy, most people should explore every alternative such as earning additional income, refinancing and negotiating with creditors.

RELATED TERMS
  1. Acquittance

    A document that shows that a debtor has been released from a ...
  2. Bow Tie Loan

    A short-term, variable-rate loan in which unpaid interest charges ...
  3. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  4. Loan

    The act of giving money, property or other material goods to ...
  5. Waterfall Payment

    A type of payment scheme in which higher-tiered creditors receive ...
  6. Defeasance

    A provision that voids a bond or loan when the borrower sets ...
RELATED FAQS
  1. Why does the majority of my mortgage payment start out as interest and gradually ...

    When you make a mortgage payment, the amount paid is a combination of an interest charge and principal repayment. Over the ... Read Full Answer >>
  2. I've come into a large amount of money. Should I invest it or pay off my mortgage?

    There is no simple answer to this question as it depends on a number of key factors, namely the aspects or criteria of your ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    College Loans: Private Vs. Federal

    Not all student loans are the same. Know what you're getting into before signing on the dotted line.
  2. Taxes

    10 Money-Saving Year-End Tax Tips

    Getting organized well before the deadline will curb your frustration and your tax liability.
  3. Options & Futures

    Subprime Is Often Subpar

    Proceed with caution when considering these short-term, high-interest mortgages.
  4. Stock Analysis

    What Could Be The Outcome For Opko Health?

    Investors have pinned high hopes on Opko Health , a development-stage healthcare company spearheaded by billionaire healthcare entrepreneur Phillip Frost.
  5. Stock Analysis

    How Will Chesapeake Energy Create Value?

    A few years ago, Chesapeake Energy's bloated balance sheet forced it to sell off assets at fire-sale prices and fund its aggressive capital spending plan.
  6. Stock Analysis

    Why Is SolarCity A Growing Stock?

    SolarCity's stock may be down about 40% in the last 12 months, but its underlying business is growing rapidly.
  7. Stock Analysis

    What Drugs Could Boost Biogen Idec’s Sales?

    Bet against biotechnology giant Biogen Idec and it's likely to sting -- at least that has been the message over the last couple of years.
  8. Stock Analysis

    What's DISH’s Strategic Direction In The Industry?

    Telecommunications industry has evolved from being a backwater of ultra-conservative utility-like stocks to a high-growth area for cutting-edge investors.
  9. Budgeting

    Choosing To Rent Or Buy in New York City

    Yes, it's good to compare values in the rental and home buying markets in the Big Apple, but be aware that personal factors are often the deciding ones.
  10. Stock Analysis

    Did J.C. Penney’s Turnaround Plan Work Out?

    J.C. Penney has wrapped up another year of its turnaround plan: ultimately, to make money in a stock, the underlying business has to make money, too.

You May Also Like

Hot Definitions
  1. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  2. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  3. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  4. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  5. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  6. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
Trading Center