Balances-To-Limits Ratio

The relationship between the outstanding balance(s) on an individual’s revolving debt(s) to the total credit limit allowed for the revolving debt(s). balloon mortgage A mortgage that has level monthly payments that would fully amortize it over a stated term, but which provides for a lump-sum payment to be due at the end of an earlier specified term. balloon payment The outstanding balance due on a balloon mortgage that must be paid in a lump sum at the end of the mortgage term. bankruptcy A legal proceeding in federal court in which a debtor seeks to restructure their obligations to creditors pursuant to the Bankruptcy Code.