Types of debt: revolving vs installment explained

Understanding types of debt helps you pick the right payoff tool. Most consumer balances fall into revolving debt (flexible payments, changing balances) or installment debt (fixed payment, set term).

Revolving debt (credit cards)

Credit cards charge interest on unpaid balances and allow new purchases. Minimum payments often stretch payoff for years. Model interest and payoff dates with the credit card payoff calculator and compare minimum-only paths in the minimum payment calculator.

Installment debt (auto and personal loans)

Installment loans use a fixed APR and term. Payments stay the same; early extras usually cut interest. Estimate payments with the installment loan calculator, personal loan calculator, or auto loan calculator.

Mixed portfolios

Most households hold both types. Use the debt payoff calculator to run snowball or avalanche across cards and loans together, then check housing and debt load with the DTI calculator.

What we do not cover as a primary product

Mortgages and student loan forgiveness programs are outside PaydownBase's core focus. For consumer revolving and installment debt, start with the tools above and our methodology.