Plain-English definitions for the terms you'll encounter on your financial journey.
The process of gradually paying off a debt over time through regular payments of principal and interest.
A detailed table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, which is a way to look at how much cash a company is actually generating from its core business operations. It helps investors see the 'raw' profit of a company before accounting tricks or financing costs get in the way.
A situation where the monthly loan payment is less than the interest due, causing the unpaid interest to be added to the principal balance.