loans
amortize
To gradually pay off a debt through regular payments that cover both principal and interest.
Example
"They chose to amortize the business loan over 10 years to keep monthly payments manageable."
💡 Memory Tip
Amor-TIZE — tize sounds like 'ties.' Regular payments tie up the loan until it's gone.
Etymology
From Latin 'admortire' — to kill off, extinguish a debt.
Common Misspellings
amortiseamortizeamortizamortiize
Related Terms
See Also
interest