HopefullyInLawSchool
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LSDefine
Simple English definitions for legal terms
balance due
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A quick definition of balance due:
Balance due is the money that someone still owes after they were supposed to pay it. It's like when you borrow money from a friend and promise to pay them back, but you haven't paid them back yet. The balance due is the amount you still owe them. It's the same with bills or loans. If you don't pay the full amount you owe, the remaining amount is called the balance due. This doesn't include any extra money you might have to pay for being late.
A more thorough explanation:
Definition: Balance due refers to the amount of money that is still owed on an account or a loan. It is the outstanding principal amount that has not been paid off yet. This amount is usually shown on a statement or an invoice that has been sent to the borrower or the debtor.
Example 1: John has a credit card with a limit of $5,000. He has used $3,000 of his credit limit to make purchases. When he receives his credit card statement, he sees that he has a balance due of $2,000. This means that he still owes $2,000 to the credit card company for the purchases he made.
Example 2: Sarah took out a student loan to pay for her college tuition. The loan amount was $20,000, and the interest rate was 5%. After she graduated, she started making monthly payments of $300. When she checked her loan statement, she saw that she still had a balance due of $15,000. This means that she still owes $15,000 to the lender, which includes the principal amount and the interest that has accrued.
The examples illustrate that balance due is the amount of money that is still owed on an account or a loan. It is the outstanding principal amount that has not been paid off yet. In Example 1, John has used $3,000 of his credit limit, but he still owes $2,000 to the credit card company. In Example 2, Sarah has been making monthly payments, but she still owes $15,000 to the lender, which includes the principal amount and the interest that has accrued.