We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.
GO TO SAT PREP GO TO ACT PREP

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Debt Service

Definition:

Debt service refers to the interest you pay on a debt in a year.

Why do you need to know this stuff? Well, for the IRS. The IRS may give you a tax break on the interest you pay on a business loan, so you may need to tally up the interest you've paid in a tax year. Banks might be interested in your debt service if you apply for a loan and the bank needs to figure out whether you have too much debt already.