Real Estate Terms Glossary
What is Installment Debt?
We can define installment debt as any loan that the borrower repays in periodic (usually monthly or quarterly) installments. Note that each payment you make will go towards your original loan and interest. There may be some additional charges, such as processing fees.
Did you know that an installment debt is usually a preferred method of consumer financing, especially for big-ticket items like homes and cars?
Examples of Installment Debt
- Example 1: Small business loans
- Example 2: Car loans
Here’s Investopedia’s definition of Installment Debt .
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