deleverage
Pay down loans
Deleverage means to reduce debt relative to assets or equity.
Companies deleverage by paying down loans, selling assets, or raising capital: The firm deleveraged by selling off its real estate holdings.
Households deleverage by paying off mortgages and credit cards.
The opposite of leverage, which means taking on debt to amplify investment returns or purchasing power.
Decreasing money owed
- asset salesSelling owned property
- divestitureDisposal of assets
- loan repaymentReturning borrowed money
- debt-to-equityBorrowed funds versus ownership
working capital · refinancing · capital allocation · credit rating
Severe economic system breakdown
- credit crunchSevere reduction in lending
- recessionProlonged economic decline
- bankruptcyLegal status when insolvent
- insolvencyInability to pay debts
market crash · contagion · systemic risk · bank run · credit freeze · margin call · write-down · impairment
Money governments owe creditors
- deficit reductionShrinking budget shortfalls
- austerityEnforced economic stringency
- government bondsState-issued debt securities
- budget cutsPlanned spending reductions
public expenditure · fiscal discipline · structural reforms · fiscal responsibility · national debt · bailout · IMF · debt ceiling
Completing payment on home loan
- debt repaymentSatisfying financial obligations
- budgetingAllocating funds systematically
- credit cardBorrowed-funds payment tool
- loan consolidationMerging multiple debts together
financial planning · savings · downsizing · frugality · debt-free · installments · consumer debt · home equity
debt reduction
Decreasing money owed
- asset salesSelling owned property
- divestitureDisposal of assets
- loan repaymentReturning borrowed money
debt-to-equity · working capital · refinancing · capital allocation · credit rating
financial crisis
Severe economic system breakdown
- credit crunchSevere reduction in lending
- recessionProlonged economic decline
- bankruptcyLegal status when insolvent
insolvency · market crash · contagion · systemic risk · bank run · credit freeze · margin call · write-down · impairment · bailout
sovereign debt
Money governments owe creditors
- deficit reductionShrinking budget shortfalls
- austerityEnforced economic stringency
- government bondsState-issued debt securities
budget cuts · public expenditure · fiscal discipline · structural reforms · fiscal responsibility · national debt · bailout · IMF · debt ceiling · bond yields
mortgage payoff
Completing payment on home loan
- debt repaymentSatisfying financial obligations
- budgetingAllocating funds systematically
- credit cardBorrowed-funds payment tool
loan consolidation · financial planning · savings · downsizing · frugality · debt-free · installments · consumer debt · home equity · debt snowball