principal payments

Definition

Payments made to reduce the amount of principal in a loan.

Use principal payments in a sentence

You should make sure that you are always making your principal payments on time to keep your credit score good.

​ Was this Helpful? YES  NO 4 people found this helpful.

Given my mortgage company does not impose an prepayment penalty I have been making additional monthly principal payments to accelerate the payoff.

​ Was this Helpful? YES  NO 6 people found this helpful.

Bryan was to pay his car loan off early by making periodic principal payments that reduced the amount of time he would spend making monthly payments.

​ Was this Helpful? YES  NO 10 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
CAT bond sinker