It's not always easy, and never fun, to keep track of how much you owe on a loan. Still, tracking your progress on paying down a loan keeps the loan picture -- and therefore your financial picture -- in sharp focus. You just need to do some basic arithmetic to calculate what remains on a promissory note.
Get out the promissory note. Find the original amount to be repaid. For this example, suppose the loan amount is $12,000, where the principal equals $10,000 and the interest equals $2,000.
Find your payment records either in a payment booklet, through an online account, or using cancelled checks or bank and credit card statements.
Tally up your payments to date. For example, if you have made 10 payments of $700 each, your total equals 10 times $700, or $7,000.
Deduct your total payments amount from the original note amount. For example, if your payments so far total $7,000, then your balance owed is $5,000.
- If you cannot find your loan and payment documentation, you can always contact the lender to get the balance owed.
- If you have not made timely payments and your promissory note includes late-payment penalties, add those penalties to the amount you owe.
- Jupiterimages/liquidlibrary/Getty Images
- How to Resolve Erroneous Credit Authorization Holds
- How to Combine Car Loans
- How to Keep Interest Payments Down on Credit Card Accounts
- How to Correct Negative Remarks on a Credit Report
- How to Find Out What Accounts Are Open on a Credit Report
- What Can a Consumer Do If Denied Credit?
- Auto Financing With High FICO Scores
- How to Have a Repo Removed from Your Credit Before Seven Years
- How to Refinance My Boat
- How Cosigned Loans Affect a Credit Report