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Installment Debt

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Installment Debt
A debt one repays with a series of payments made regularly over time. For example, if one buys an expensive consumer good, such as furniture, one may agree with the seller to pay a certain amount each month for one year when the furniture will be paid in full. Installment debt usually carries interest.


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Most people can afford about 10% of their net income to installment debt.
Owing a lot of money in installment debt isn't going to hurt your credit score as much as maxing out your credit cards.
 
 
 
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