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Definitions E

Extinguishment

Extinguishment is the elimination of debt that occurs when a borrower repays a loan in-full, through extinguishment payment schedule established with the lender, or through settlement.

From Loans.QandAs.com:

“Extinguishment of debt is a process wherein a borrower removes or eliminates a debt by means of repayment or settlement. There are a variety of ways to get rid of debt, and consumers can quickly extinguish their debt.”