Installment payments are a method of paying for goods or services over time, rather than in a single lump sum. This approach allows consumers to break down the total cost into smaller, manageable amounts, which are paid at regular intervals, such as monthly. This can make larger purchases more affordable and accessible. Typically, installment payments are used for significant expenses like cars, furniture, or home appliances. The terms of these payments, including the duration and interest rates, are usually outlined in a contract. This system helps both buyers and sellers by providing flexibility in payment options.