paying interest

USAGE SUMMARY

The phrase "paying interest" is correct and usable in written English.
It can be used in contexts related to finance, loans, or investments, where one party compensates another for the use of borrowed money. Example: "When you take out a loan, you will be paying interest on the amount borrowed until it is fully repaid."

✓ Grammatically correct

News & Media

Encyclopedias

Science

Human-verified examples from authoritative sources

Exact Expressions

58 human-written examples

The bonds are still paying interest.

The New York Times

Paying Interest On Security Deposit Q.

The New York Times

Paying Interest On Escrow Accounts Q.

The New York Times

Or will it stop paying interest on the debt?

The New York Times

Most of it goes toward paying interest on loans.

The New Yorker

The government is paying interest to a body that is an arm of itself, rather like a husband paying interest to his wife.

The Economist

So the government should not be obligated to keep paying interest.

The New York Times

I'll start paying interest on my debt, which will increase my personal income.

The New York Times

And today paying interest is routine even in the most conservative Muslim countries.

The New York Times

It is worth borrowing now and paying interest in order to bring this about.

The Economist

Loans which are not paying interest totalled dollars 1.126bn, compared with dollars 1.336bn a year before.

Independent

Expert writing Tips

Best practice

When writing about loans or investments, use "paying interest" to clearly indicate the action of compensating a lender or investor for the use of their money.

Common error

Ensure you differentiate between the principal (the original sum borrowed or invested) and the interest (the cost of borrowing or the return on investment). Avoid phrases like "paying principal and interest" when you only mean "paying interest".

Linguistic Context

Paying interest functions as a verb phrase, describing the action of compensating a lender or investor for the use of funds. Ludwig AI confirms its correct and widespread usability. It signifies a financial transaction where money is exchanged as a cost for borrowing.

Expression frequency: Very common

Frequent in

News & Media

40%

Formal & Business

30%

Science

15%

Less common in

Encyclopedias

5%

Wiki

5%

Social Media

5%

Ludwig's WRAP-UP

The phrase "paying interest" is a common and grammatically correct verb phrase used to describe the act of compensating a lender or investor for the use of their money. As Ludwig AI confirms, it appears frequently in financial contexts within news, business, and academic settings. When writing about this topic, remember to differentiate between the principal and the interest, and ensure clarity in your descriptions to avoid confusion. Consider alternatives like "remitting interest" or "making interest payments" for variety. Be precise in your language and differentiate paying versus incurring interest.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

making interest payments

A more descriptive and explicit way of saying "paying interest".

remitting interest

Focuses on the action of sending the interest payment.

disbursing interest

Emphasizes the act of distributing the interest.

settling interest

Highlights the finalization of the interest payment.

servicing the debt

Broader term encompassing all activities related to managing debt, including interest payments.

honoring interest obligations

Highlights the fulfillment of a financial duty to pay interest.

covering interest expenses

Focuses on the financial aspect of handling interest payments.

accruing interest

Shifts the focus to the accumulation of interest over time, rather than the act of paying it.

yielding interest

Describes the generation of interest income, often from investments.

bearing interest

Describes an asset or account that is subject to interest accrual.

FAQs

How can I use "paying interest" in a sentence?

You can use "paying interest" to describe the act of making payments on a loan, such as "He is "paying interest" on his mortgage every month".

What's a simple way to describe "paying interest"?

"Paying interest" essentially means compensating someone for the use of their money. It's the cost of borrowing or the reward for lending.

Is it correct to say "incurring interest" instead of "paying interest"?

Both are correct, but they have slightly different meanings. "Incurring interest" refers to the accumulation of interest, while ""paying interest"" refers to the act of making a payment to cover that interest.

What is the opposite of "paying interest" in a financial context?

The opposite of "paying interest" is "receiving interest", which describes the act of earning interest on an investment or deposit.