PAYED DOWN Meaning and
Definition
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"Payed down" is a phrasal verb that refers to the act of reducing or decreasing the amount of debt or an outstanding balance owed on a loan or credit. This term is commonly used in financial and accounting contexts, particularly in relation to loan repayments or the use of surplus funds to settle outstanding debts.
When an individual or organization "pays down" a debt, it means they make a payment towards the principal amount owed, thereby reducing the overall outstanding balance. This payment typically includes both interest and principal repayment, helping to lower the total obligation. "Payed down" is often used to describe regular or additional payments made to lessen the overall debt burden over a period of time.
The concept of "paying down" is crucial in personal finance, as it enables individuals to decrease their debt and improve their financial standing. By paying down debts, individuals can reduce interest charges, have a better debt-to-income ratio, and potentially be able to access credit more easily in the future. Moreover, businesses and governments also employ this strategy to manage their financial and borrowing activities. Paying down debt can be seen as a responsible and proactive measure that contributes to better financial stability and a healthier financial profile.
Common Misspellings for PAYED DOWN
- payed down
- payd down
- oayed down
- -ayed down
- 0ayed down
- pzyed down
- psyed down
- pwyed down
- pqyed down
- pahed down
- paued down
- pa7ed down
- pa6ed down
- paywd down
- paysd down
- paydd down
- payrd down
- pay4d down
- pay3d down
- payes down
Etymology of PAYED DOWN
The term "payed down" is a combination of two words: "pay" and "down". Here is a breakdown of their etymologies:
1. "Pay" originates from the Old French word "paier", which means "to pay" or "to satisfy a debt". It can be traced back to the Latin word "pacare", meaning "to pacify" or "to pay", which ultimately derives from the Proto-Indo-European root "*peh₂ǵ-", signifying "to fasten" or "to tie".
2. "Down" comes from the Old English word "dūne", which denotes a hill or elevated place. It can be linked to the Proto-Germanic word "*dūnoun" and the Proto-Indo-European root "*dheu-", both meaning "hill" or "mound".
