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When debt is repaid in payments of different quantities of a couple of colorful slang expression used to spell it out a variety of loan structures. The phrase Balloon payment occurs, because if you hold back most of the debt and just pay at the conclusion of anything, understanding that the last payment along with the total amount refunded is far greater. Debts are inflated as being a balloon due to compound interest to create a large amount. More details about Balloon payment , see here! Balloon payment notes that are gonna come due may seem like a great bargain, since you will get a huge payment soon in case you own the credit. But often these plans are trouble in disguise, just like the debtor defaults, you can result in foreclosure proceedings, and possibly eligible for only a partial payment for the note. Selling these kinds of note can sometimes be difficult unless you flip it for a discount, particularly if the person paying on the mortgage has trouble making the money they owe promptly.