• Installment debt is a loan that is repaid in regular payments, such as most mortgages and auto loans.

  • Installment loans are good for borrowers because they allow you to finance large amounts, and for lenders they provide regular payments.
  • Installment loans are generally less risky than other alternative loans that do not require installment payments, such as lump-sum or interest-only loans.
  • Installment debt can be a type of personal loan.
  • Your amortization schedule determines how much you pay in monthly installments.