debt service

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Related to debt service: Debt Service Ratio, annual debt service

Debt service

Interest payment plus repayments of principal to creditors (retirement of debt).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Debt Service

The amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be "unable to service one's debt." An example of debt service is a monthly student loan payment. See also: Debt service coverage ratio.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

debt service

Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific time period. A firm's ability to service its debt is estimated by comparing cash flow with debt service.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

debt service

The amount necessary to make principal and interest payments on a loan.It does not include amounts collected each month as a reserve for insurance or real estate taxes and does not include payments for private mortgage insurance.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
If the PMT answer were multiplied by two, the answer provided would be the semi-annual debt service rather than the annual debt service.
"We are grateful for the congressman's support of this initiative, and for his leadership and commitment to continuing to seek federal earmarks to fund the ongoing debt service needs of this pivotal project," Mr.
After the budget is set, stochastic shocks impact on program spending, tax revenues and debt service, causing the budget balance to diverge from projected levels.
Pakistan had to resume full debt service payments despite the balance of payments difficulties, but on the request of Government of Pakistan, debt relief of USD 136.3 million and USD 90 million was given during 1978-79 to 1979-80 [Pakistan (1980-81a)].
If the local law as applied permits the debtor to do so, the debtor may be perfectly content to have such a proceeding continue uninterrupted for as long as possible since the debtor may be relieved from its debt service obligations during this period.
* Debt service coverage ratio is the lender's acid test.
FM directs the BK1 affiliate to pay BK1 annual amounts equal to 90% of FM's annual rent obligation under the sublease (i.e., amounts sufficient to satisfy X's debt service obligation to BK1).
To assess whether household debt service is useful for predicting consumer spending, I first estimated equations expressing the growth rate of real (inflation-adjusted) consumer spending as a function of lagged values of the ratio of debt service to disposable personal income.(5) To measure consumer spending, I used total personal consumption expenditures, as well as the major components of spending on durables, nondurables, and services, I estimated separate equations for each spending measure, first using the debt-service ratio for consumer loans and then the debt-service ratio for total loans.(6)
The World Bank's World Debt Tables, 1994-1995 highlights the need to assess the debt sustainability of these severely indebted low-income countries (SILICs) on a country-by-country basis, with particular reference to their export growth potential over the long run and the outlook for the availability of concessional finance (including grants) or private capital to finance the needed imports and cover debt service. Specifically, it is stated in the World Bank's World Debt Tables that:
A second measure is the debt service ratio, which expresses the payments on the debt (debt service) as a percentage of the annual value of exports of goods and services of a country.
Dividends on unallocated shares are now charged to compensation if you pay them to participants or account for them as debt reduction or accrued interest, if you use them for debt service (effectively charging compensation expense for all dividends on unallocated shares).