debt service

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Debt service

Interest payment plus repayments of principal to creditors (retirement of debt).

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.

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.

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.

References in periodicals archive ?
Debt Relief Advocates' full service debt settlement program is a turnkey solution most effective for people with $10,000 or more in credit card and other unsecured debt.
Statements about RCC's future prospects are forward-looking and, therefore, involve certain risks and uncertainties, including but not limited to: the ability to integrate newly acquired properties with current operations, competitive considerations, success of customer enrollment and retention initiatives, the ability to increase wireless usage and reduce customer acquisition costs, the ability to deploy new network technology on a timely basis, and the ability to service debt.
However, households' ability to service debt remains strong, as the ratio of interest expenditure to disposable income is low.
Statements about RCC's future prospects are forward-looking and, therefore, involve certain risks and uncertainties, including but not limited to: the ability to integrate newly acquired properties with current operations, competitive considerations, success of customer enrollment and retention initiatives, the ability to increase wireless usage and reduce customer acquisition costs, the ability to deploy new network technology on a timely basis, the ability to service debt, and other factors discussed in RCC's Report on Form 10-K for the year ended December 31, 2005 and from time to time in its other filings with the Securities and Exchange Commission.
00 times for the more established guarantors, reflecting the larger companies' more robust earnings stream relative to their debt load and indicating their stronger capacity to service debt, even at higher leverage levels.
IPALCO's ratings also consider the structural subordination of IPALCO's debt to that of IPL, the reliance on distributions from IPL to service debt and operating expenses, and linkage to much weaker parent company AES Corporation (AES).

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