What is the term for the gradual reduction of debt through regular payments?

The term for the gradual reduction of debt through regular payments is amortization. This process involves making periodic payments on a loan, which reduces the principal balance over time until the debt is paid off completely. Each payment typically consists of both interest and a portion of the principal, allowing the borrower to systematically decrease the amount owed.

Amortization is particularly important in real estate, as mortgages are commonly structured in this way, allowing homeowners to understand how much they will pay each month and how their debt will decrease over the life of the loan. This concept helps borrowers manage their finances effectively and ensure that they can track their progress towards full repayment of the debt.

Other terms mentioned, such as subordination, iodization, and novation, pertain to different concepts in finance and real estate, making them unrelated to the process of reducing debt through scheduled payments.