Hey everybody. It’s time for another edition of our financial lexicon, the post where you find out about weird money terms and what they mean. Today’s term is amortize, or amortization. 
Amortize comes from a Latin word that means "to kill".
That’s what amortization does; it slowly kills your loan debt with regular payments that pay down your principle debt and interest. So when your loan is amortized, it's been split up in payments over the length of the term. Loan payments are planned out with an amortization schedule, which is how you plan to pay off both your principal debt and your interest. If you want to see how an amortization schedule works, check out this calculator.
So now that you know what amortization is, get out there, understand how your loan payments work, and make a plan to kill your debt before it gets you. For other helpful hints about how to fight debt, check out Destination Debt Free: Mapping your way out of debt.
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