What is the term for the process of paying off a debt in regular installments?

The correct term for the process of paying off a debt in regular installments is amortization. Amortization involves breaking down a loan into a series of fixed payments over a specified period. Each payment consists of both principal and interest, with the portion allocated to the principal gradually increasing over time while the interest portion decreases. This method is commonly used for mortgages and other types of loans, enabling borrowers to systematically eliminate their debt.

Refinancing, on the other hand, refers to the process of replacing an existing loan with a new one, typically to obtain better terms or a lower interest rate, rather than focusing on the payment structure itself. Capitalization generally relates to the process of funding a business or project, not specifically to debt repayment. Equity building involves increasing ownership in an asset, such as real estate, and also does not directly relate to the structured repayment of debts. Thus, amortization is the precise term that encapsulates the concept of paying off debt in regular installments.