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What is an installment debt?

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During the mortgage application process, you'll be asked a lot of questions. We're really good at this – it's like a first date – except we really listen. And one of the things we'll ask you about is if you have any installment debts. (By the way, your credit check will also bring up any past installment loans or debt.)

Installment debt is a loan that you make recurring payments on. Car loans, student loans and debt-consolidation loans are all types of installment debt. Insurance payments or medical bills – typical living expenses that you're billed for – aren't installment loans.