Definition

Noun: - Debt repaid through scheduled payments: "Installment debt" refers to a loan or financial obligation that is repaid over time through a series of regular, predetermined payments, known as installments. Each installment typically includes a portion of the principal amount borrowed plus interest.

Usage and Examples

• General Use: The term is commonly used in personal finance, banking, and consumer contexts to describe common types of loans.
  • Taking on too much installment debt, like car loans, can strain a monthly budget.
  • Her credit report showed a history of responsibly managed installment debt.

Advanced Usage

• In Financial Contexts: The term is used to distinguish this form of debt from revolving debt (like credit cards) or single-payment debt.
  • When analyzing a company's liabilities, accountants separate revolving credit from installment debt.

Variants and Related Words

• Installment loan (n): A specific type of loan repaid in installments. This is a closely related compound term.
  • He got an installment loan from the bank to buy new furniture.
• Installment plan (n): A payment system allowing a purchaser to pay for an item in installments.
  • The store offered an interest-free installment plan for the appliance.

Synonyms

• Amortized debt: Debt repaid in regular payments that cover both principal and interest.
• Term loan: A loan from a bank for a specific amount that has a specified repayment schedule.

Antonyms

• Revolving debt: Debt, like credit card balances, where the borrower can repeatedly borrow up to a limit and has flexible repayment amounts.
• Balloon debt: Debt that requires a large, lump-sum payment at the end of the loan term.

Noun

1. debt to be paid by installments