annual debt service

Definition

The yearly payments a person must make on a loan, comprising the principle and interest added over 12 months. For example, if a loan requires principal payments of $300 and interest payments of $50 per month, then the annual debt service of the loan is $4,200 ($350 times 12.)

Use annual debt service in a sentence

The annual debt service was cool to learn about cause it dealt with yearly payments that a person had to make on a loan.

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You should try to make sure that you are always on time with your annual debt service so your credit rating is not affected.

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Most people run into trouble when their annual debt service exceeds 50% of their annual take home pay and they have trouble making minimum payments.

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annual convention blank debt coverage ratio