debt service

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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 ?
It also maintains increased TV revenue and money from a new shirt sponsorship deal with AIG is being used to service debts. However, a Glazer family spokesman dismissed the report, saying: "The story is inaccurate.
Debt Freedom Day fell five days earlier than last year, when higher levels of personal indebtedness meant it took the average consumer until February 6 to earn enough to service debts.
They recognize the principle that countries should not have to service debts which disable them from meeting the fundamental needs of their people.
It will service debts to multilateral institutions, but cannot meet most of its obligations to Paris Club and some foreign commercial lenders.
He said: "Despite the record high borrowing rates in Scotland, we are generally much better placed to service debts because of the low interest rates."

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