balloon payment

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English[edit]

Etymology[edit]

Because the debt becomes inflated like a balloon as a result of the compound interest accumulating on the large sum.

Noun[edit]

balloon payment (plural balloon payments)

English Wikipedia has an article on:
Wikipedia
  1. An unusually large payment due at the end of the term of a loan agreement.
    Synonym: lump sum

Related terms[edit]

See also[edit]