Understanding Instalments: A Guide to Debt Repayment

An instalment is a part of a debt or loan that is paid at one time, usually on a regular basis, such as monthly or quarterly. It is a portion of the total amount borrowed that is repaid over a set period of time.

For example, if you borrow $10,000 to buy a car and agree to pay it back over 5 years, each monthly payment would be an instalment of $200 ($10,000 / 5 years = $200 per month).

Instalments can also refer to the regular payments made towards a mortgage or other long-term loan. In this case, the instalments are typically paid monthly and are used to repay the principal amount borrowed, as well as any interest and fees that have accrued.

Overall, instalments are an important part of managing debt and making timely payments to avoid defaulting on a loan or mortgage.