In this video, we explore the differences between revolving and installment debt. Learn more today!
What is Revolving Debt?
Revolving debt, like credit cards, has no set pay-off date. The downside is high interest rates and the possibility of increased debt over time. The good and bad: revolving debt is flexible, but can be expensive if not paid off properly. Common examples, meanwhile, include credit cards.
What is Installment Debt?
Installment debt is debt that has a fixed schedule. You need exactly when the debt needs to be paid off, while this form of debt also has lower interest rates. The good and bad: installment debt is structured and predictable, but can get difficult if you cannot pay off your designated installment loan at the specified time.
