debt-repayment

Vocabulary Word

Definition

Debt repayment is the act of paying back a loan. It usually includes paying the principal (the original amount of money borrowed) and interest (the cost of borrowing). It's similar to returning a borrowed car with extra fuel for the owner's use.

Examples in Different Contexts

In loan management, 'debt-repayment' refers to the process of paying back borrowed money to lenders or creditors over time. A loan manager might say, 'Effective debt-repayment strategies include regular, timely payments to avoid accruing additional interest and fees.'

Practice Scenarios

Tech

Scenario:

Our new software release has been highly successful. How should we allocate the generated revenue?

Response:

The increased revenue must be directed towards our debt repayment. It's important to reduce our financial liabilities for future expansion.

Academics

Scenario:

You've finally landed a great job after graduation. How do you plan to cope with the financial commitments you have?

Response:

First thing on my list is to plan my debt repayment for the student loans. I want to be free from debt as soon as possible.