Installment liabilities are any loans and similar debts that require regular monthly payments on a predetermined schedule. In some ways, many of the other liabilities that are discussed below can be considered installment debts if regular installment payments are involved. For mortgage lenders and credit reports, however, installment debts are primarily formal liabilities, such as automobile, student and personal loans.
Technically, mortgage loans are installment debts; however, most mortgage lenders place them in a unique category.
Business loans are also considered installment debts. However, most business loans often are not weighted against the applicant. The business loan is considered against the company owned by the applicant. The applicant's income is usually based on the net revenue of the business.
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