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Rule Of 78 and Readjustment

Rule Of 78 and Readjustment terms for credit facilities, borrower analysis, pricing, fees, amortization, repayment, loan types, and regulation.

Rule Of 78 and Readjustment terms explain loan types, credit facilities, borrower analysis, pricing, interest, fees, repayment schedules, amortization, government programs, and lending standards.

Use this branch when a loan term changes facility type, borrower obligation, cost of credit, repayment timing, eligibility, underwriting, or regulatory disclosure.

Key Terms in This Branch

TermUse it for
ReadjustmentLoan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term.
Rule of 78Loan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term.
Rule of 78sLoan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term.

What to Check

Check the promissory note or loan agreement, borrower eligibility, principal, rate, APR, fee schedule, maturity, amortization method, repayment term, covenant, disclosure, and underwriting file.

Common Mistakes

  • Comparing loans only by stated interest rate instead of APR, fees, term, and repayment schedule.
  • Ignoring whether credit is open-end, revolving, installment, secured, or committed.
  • Treating eligibility for a program as proof of suitability or affordability.
  • Using loan labels without checking the actual borrower obligation.

Loan terms affect cost and legal obligations; this page is educational and does not provide personalized borrowing or lending advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Readjustment

Readjustment involves the voluntary restructuring of a corporation's debt and capital structure by its stockholders, often necessitated by financial difficulties.

Rule of 78

The Rule of 78 is a precomputed interest method that front-loads interest charges on some installment loans.

Rule of 78s

The Rule of 78s is a method used to calculate the interest charged on installment loans with add-on interest. It is based on the sum of the digits from 1 to 12 for a 12-month loan.

Revised on Sunday, June 21, 2026