verb
liquidate
To pay off a debt or settle an obligation.
The company liquidates its remaining debt with this final payment.
Etymology
Liquidate derives from making clear or settling an account. In finance, it means clearing the obligation by paying or otherwise settling what is owed.
More examples
- She used her inheritance to liquidate the mortgage debt.
- The estate liquidated all outstanding debts before distributing the inheritance.
- Liquidating the loan early will save us interest.
Forms
liquidate · liquidates · liquidated · liquidating
liquidation noun — The payment or settlement of debts.