An installment loan is a financial instrument that provides all requested money in one lump sum. Pay attention to interest rates associated with installment loans with help from a financial planner in this free video on personal loans and money management.
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Hi, my name is Bill Rae. I'm with HBW of Florida. Been in the the finance field for well over 20 years. Today, we're going to talk about installment loans. What is an installment loan, and how do they work? Well, an installment loan is a financial instrument that will give you all the money you're requesting upfront in one lump sum. The contract will then call for you to make payments, whether it be monthly, every couple of weeks, every couple of months, or once a year, depending upon how the contract is structured. What's the interest rate and the cost associated with those loans? That's something you really need to pay attention to. So the basic concept of an installment loan is you get all the money upfront, and you simply make periodic payments until the loan is paid off. Once that's done, the contract is over. There's no additional access to funds and no additional charges to you. An installment loan is an excellent way to build credit. But like all financial instruments, be careful of what you're signing, be careful of who you're dealing with, and at all times, seek outside counsel. My name is Bill Rae, I'm with HBW, and I'm helping you build wealth.