Recurring debt,
Definition of Recurring debt:
Any debt payments that recur on a regular basis and cannot be postponed or canceled. Examples include alimony, child support and mortgage payments. Lenders consider recurring debt when evaluating the creditworthiness of a potential borrower.
Certain bills, such as subscriptions, do not count as recurring debts because these payments can be terminated. Credit card balances are not counted as part of a consumer's monthly debt if the balance is paid in full every month. Lenders consider spousal support (alimony) and child support as long-term debt obligations when calculating eligibility for a home loan. Lower monthly debt levels will generally improve an individual's credit score, allowing him or her to obtain lower interest rates on lines of credit.
Recurring debt is any payment used to service debt obligations that occur on a continuing basis. Recurring debt involves payments that cannot be easily canceled at the payer's request, including alimony, child support and loan payments.
Meaning of Recurring debt & Recurring debt Definition
