Amortization explained in less than 1 minute. In this video, we're going to teach you all about amortization. Amortization is a process that helps you reduce the overall cost of your debt over time. If you're interested in learning more about amortization, be sure to watch this video! We'll give you a brief overview of the process, as well as some tips on how to amortize your debt the right way. Amortization is the word to describe the gradual repayment of a debt. You must make payments on a schedule when you borrow money. These payments are determined by how much you borrow, the time you borrow and the interest rate. Sometimes amortization is referred to as the schedule of payments or amortization schedule. This is because it is a list of the payments you will make over a period of time. A loan will be amortized over a period of time, typically over a period of years. The interest rate will be applied to each payment, making the payments much higher than if you only paid the amount of the loaned money. After watching this video, you'll have a better understanding of amortization and will be able to make better financial decisions in the future! Disclaimer: The content of this video is for educational purposes only and nothing shall be considered to be financial, legal or tax advice. None of the opinions of this video constitute individual advice.