What is a Loan Balance?
By Emily Delbridge. Car Insurance and Loans Expert
Emily Sue Delbridge has a strong family history in the insurance industry. She has been in the insurance business since 2005 with her primary focus on personal lines insurance. Read more
A loan balance is the amount left to pay on your loan. Every loan you take out will have a loan balance up until the loan is completely paid off. Your loan balance changes on a daily basis because interest is added daily.
Outstanding Loan Balance
It can be referring to just the loan payment which is past due or the loan balance in its entirety.
Best Loan Calculators
If you cannot find your loan statement, you will need to know a few details about your loan in order to calculate your loan balance. Use a traditional loan calculator and input the remaining time left on your loan, your monthly payment, and your interest rate. Then you will have to make a guestimate on your loan balance. Once all
the numbers match up you have found your loan balance.
Best Loan Balance Calculator
Or get straight to the number you are looking for with a loan balance calculator .
Trading in a Car with a Loan Balance
Normally, it is not a problem to trade in a car with a remaining loan balance. If the value being offered on your vehicle is greater than the amount you owe, you will come out ahead. Pay off your loan and use the remaining balance towards your new car purchase.
Some different options are available for you if you owe more than the dealership is willing to pay for your trade in.
You have the option to pay off the remaining balance on your own. Or, you might be able to roll your remaining balance onto your newly purchased car loan. Rolling over your balance will most likely put you upside down on your new car loan. You will need to work hard to pay down the balance quickly.Source: carinsurance.about.com