Definition
Loan repayment plans where you pay the same amount each period. They make it easier to budget since you know exactly what to expect.
What to consider
- They provide predictability in your monthly financial obligations.
- Stick to the plan so you know exactly what you’re paying.
- Be aware that the total cost might be higher over time.
Real world scenarios
- Ben takes out a personal loan with consistent monthly payments, making it easy to plan his budget.
- Gina prefers fixed-payment plans to avoid fluctuating interest costs and keep finances predictable.
- Whenever Ethan’s paycheck increases, he considers paying extra on these fixed loans to accelerate debt freedom.
Related terms
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