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Remaining Balance

Definition - What does Remaining Balance mean?

Remaining balance is the amount of money that is still owed on a loan. A person can repay the remaining balance in one lump sum, or he or she can pay it back over time with many smaller payments. The more time that passes while the loan is unpaid, the more interest that accumulates.

Justipedia explains Remaining Balance

An example of a remaining balance would be a man who has taken out a loan for $10,000.00, who has paid back $7,000.00, and who still owes $3,000.00. In this case, $3,000.00 would be the remaining balance. Any loan can have a remaining balance if there is still money left to be repaid on the principal. Car loans, home loans, student loans, and other types of loans are just some examples of loans that can have remaining balances.

When working to pay off debt, all remaining balances on loans and credit cards are often lumped together into one single loan in order to benefit from a lower interest rate. Debt consolidation agencies will issue a loan that will pay off the remaining balances on all other loans and then the consumer will make one payment at a lower rate. This approach can work well for consumers provided that no new debts are created.

For more information on consumer rights in Debt Consolidation please see https://www.justipedia.com/2/9967/debt/creditor-ha...

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