Legal Definitions - balance due

The term balance due refers to the specific amount of money that remains unpaid from a previous bill, invoice, or financial statement, for which payment was expected by a certain date. It represents the outstanding portion of a financial obligation that has not yet been settled. This amount typically includes only the principal debt and any interest that has already accumulated, but generally excludes future interest that has not yet been charged or accrued.

• Example 1: Unpaid Credit Card Statement

  Imagine a person receives their monthly credit card statement showing a total amount owed of $750, with a payment due date of the 15th of the month. If they only pay $500 by the due date, the remaining $250 would be the balance due on their next statement. This $250 is the portion of the previous month's bill that was required but not paid, and it will likely incur new interest charges if not paid promptly.

• Example 2: Partial Rent Payment

  A tenant's monthly rent is $1,500, due on the 1st of each month. In a particular month, the tenant only pays $1,000 by the due date. The landlord would then inform the tenant that there is a balance due of $500. This $500 represents the outstanding amount from the rent obligation for that month that was expected but not fully remitted.

• Example 3: Business Invoice for Services

  A small marketing agency completes a project for a client and sends an invoice for $5,000, with payment expected within 30 days. The client makes an initial payment of $3,500 within the specified timeframe. The remaining $1,500 is the balance due. This is the amount still owed from the original invoice for services rendered, which the client is obligated to pay to fully settle the account.