Revolving Debt

Typical of a credit card or line of credit, revolving debt encompasses all credit products where you can borrow (e.g., spend or draw) up to a certain amount, which is known as your credit limit. Any payment you can make on a revolving debt account replenishes your credit limit. Revolving debt is the opposite of a installment loan, in which you receive one lump sum and pay it back in installments.