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Definition of

negative amortization

Finance

addition to principal following incomplete interest payments an increase in the principal of a loan due to the inadequacy of payments to cover the interest

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    People have compared recent problems to the 1930s, but they’re considerably smaller. The Great Depression was the biggest economic event in US history. Ameritrust has calculated the deviation from trend for the American economy since 1790. The Great Depression held the economy below trend for 10¾ consecutive years with a maximum deviation of 51% from trend. There is no danger of experiencing anything like the Great Depression in the United...

Definitions of ’negative amortization’ and meaning of ’negative amortization’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’negative amortization’ and other financial terms with our online QFINANCE Financial Dictionary.

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