What context can I use each word in?
Learn when and how to use these words with these examples!
payment
Example
I made a payment for my rent using my credit card. [payment: noun]
Example
The payment for the car was due at the end of the month. [payment: noun]
settlement
Example
The settlement of the lawsuit was reached after months of negotiations. [settlement: noun]
Example
The bank agreed to a settlement plan for the outstanding debt. [settlement: noun]
Good things to know
Which word is more common?
Payment is more commonly used in everyday language, while settlement is more often used in legal or financial contexts.
What’s the difference in the tone of formality between payment and settlement?
Settlement is generally considered more formal than payment, as it often involves legal proceedings or agreements.
