fixed revolving
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- How to read in Japanese: fixed revolving
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A method of limiting the amount of payment to a certain amount each month for payments such as credit card payments is called revolving. For example, if the terms of a revolving payment are set at 100,000 yen per month, a purchase of a 300,000 yen product would result in a payment of 100,000 yen for three months.
In fact, because interest is charged, the total repayment amount is generally larger than that of a lump-sum payment. There are two types of revolving loans: fixed-rate revolving, in which a fixed amount is repaid each month, and declining-rate revolving, in which a percentage of the loan amount is repaid.
The advantage of using revolving credit is that you do not have to make more than a certain number of payments in a month, which allows you to shop more efficiently by using it systematically.
However, you must be careful because you will only be charged a certain amount of repayment no matter how much is left. This is because in some cases, if not managed well, the total loan amount may be larger than expected.