Number of Payments

Some items are typically financed for longer than other items.  Here are some typical timeframes for buying different items:

Loans typically secured by the purchased item:

  • Houses: 180 or 360 months. Houses have relatively stable values and long lives with proper care – taking 30 years to pay for one isn’t strange.
  • Cars (Purchase): 48 to 72 months. ¬†Watch out – the manufacturer’s warranty ends before the financing does so buyers can be left with some extra major expenses at the end.
  • Cars (Lease): 24 to 36 months. Some cars don’t “lease well” and others are fantastic deals. These vary by manufacturer and even by model.
  • Boats: 120 to 180 months. Boats hold their value much better than cars do, and they aren’t being manufactured by the millions every year. Have some extra cash handy – they’re expensive to fix!
  • Airplanes: 120 to 240 months. Airplanes hold their value exceptionally well over the years if they are maintained properly. Maintaining an airplane is expensive, and flying one is even more expensive – the faster they can go, the more they cost.
  • Business: 3 to 300 months. These vary wildly depending on the lender, amount, and specific purpose. Be prepared for the bank to thoroughly examine the businesses financials.

Loans protected from bankruptcy discharge:

  • Education: 240 to 300 months. Depending on how much is borrowed, federal vs private, the individual income, and deferments. Loans that aren’t satisfied after 20-25 years may be eligible for forgiveness.

Unsecured debt:

  • Credit cards: Lifetime. Many Americans live in constant credit card debt throughout their lives. Paying the minimums will allow the balances to grow. Use our app to figure out your own payback plan on a timeline you can afford!