Word: amortize (verb)

Associations

"Amortize" means to gradually pay off a debt or cost over time, usually in regular payments. It is often used in finance and accounting.

• When you take a loan, you amortize it by making monthly payments until it is fully paid. For example: "We will amortize the mortgage over 30 years."
• Businesses amortize the cost of an asset to spread the expense over its useful life. For example: "The company amortizes the cost of the equipment over five years."
• Amortize can also mean to reduce a debt or cost little by little. For example: "We plan to amortize the credit card balance over six months."

Synonym: "pay off" is a synonym, but "amortize" usually implies regular, scheduled payments over time, not just paying all at once.

Substitution

You can replace "amortize" with:

• "pay off" (more general, can be one-time or over time)
• "write off" (used more for accounting when reducing value of an asset)
• "repay" (general term for returning borrowed money) Using "amortize" emphasizes the process of spreading payments over time.

Deconstruction

• Prefix "a-" here is part of the verb form.
• Root "mort" comes from Latin "mors" meaning "death." Historically, "mortgage" means "death pledge" because the pledge ends (dies) when the debt is paid.
• Suffix "-ize" turns a noun or adjective into a verb meaning "to make or become." So "amortize" literally means to "kill off" a debt gradually.

Inquiry

• Have you ever taken a loan or paid for something in installments? How did you manage the payments?
• Can you think of other situations where spreading costs over time is helpful?
• How does amortizing a loan help people plan their finances better?