amortize

Other forms: amortized; amortizing; amortizes

To amortize is to gradually pay off a debt. A bank will help you amortize a loan so that you can make a monthly payment until you've paid back the entire amount.

A simple way to understand the verb amortize is "make monthly payments on a debt." More specifically, to amortize is to pay down the total amount of the loan a little bit at a time, rather than only covering fees or interest on top of the loan amount. Someone whose bank amortizes their car loan makes a payment each month, gradually reducing the total amount they owe. Amortize stems from a Vulgar Latin word meaning "extinguish."