Installment Debt

A loan is a contract in which an individual borrows money from the lender and agrees to repay it with interest over time. There are many different types of loans, but they all have one similar purpose: giving individuals access to funds that can be repaid gradually. Borrowers must pay back this debt through regular monthly payments so as not to become burdened by high rates of interest on their original capital sum due at once (though some lenders do offer lump-sum settlements).