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Debt service refers to the series of payments of principal and interest on a loan or other obligation. Debt service payments are usually structured in regular intervals: monthly, semi-annually, or annually, although it is possible to structure debt service payments on virtually any time schedule. Debt service can apply to the payment of individual debts, or debt service may apply to the repayment of corporate debts as well. Corporate debt service can refer to the repayment of principal and interest on a bank loan, or corporate debt service can mean the repayment of principal and interest on bonds or other debt obligations issued by a company. Missed or late debt service payments tend to be a sign of impending trouble within a company. |
