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Finance & Banking vocabulary · Loans & Credit

Pay off

Meaning in finance & banking, with examples

phrasal verbCore term

In finance & banking, pay off means: To pay back the whole amount of a debt, such as a loan, mortgage or credit card balance, so that nothing more is owed.

In Turkish: borcu kapatmak, borcu ödeyip bitirmek

How it is used

Very common in customer conversations. You pay off a loan early or pay it off in full; 'pay down' means reducing a debt without clearing it. The payoff amount is the sum needed to close a loan on a given date.

Example sentences

  1. He wants to pay off his car loan early with his bonus.

  2. Customers who pay off the card balance in full each month pay no interest.

Common collocations

  • pay off a loan
  • pay off a mortgage
  • pay off debt
  • pay off in full
  • pay off early
  • take out a loanTo borrow money from a bank or another lender under an agreement to repay it over time.
  • principalThe original amount of money borrowed or invested, not including interest. Each loan payment usually covers some interest and some principal.
  • outstandingNot yet paid or settled. An outstanding loan or invoice still has money owed on it.
  • mortgageA long-term loan used to buy a home or other property. The property secures the loan, so the lender can have it sold if the borrower does not repay.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.