"What kind of debt is a car loan considered? "

"I am going through my finances and putting together a list of all of my debt so that I can come up with a plan to get out of debt. My plan so far is to break everything up into sections such as long- and short-term debt and then work on eliminating one thing at a time starting, with the short-term list. Would a car loan be considered short or long term?"

Answer
“It really depends on how you intend to pay for the loan. If you are making the minimum monthly payment every month for 4-6 years, then it would be long term. However, if you are planning to aggressively pay the car off within a year, then it would be considered short term.
A good rule of thumb is that any debt that would take you longer than one year to pay off should be considered long-term debt.
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Johnny Puckett
Answered on Jul 26, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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