Repayment

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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.

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