When Current Balance Equals Payoff Balance
For most service agreements, payoff balance and current balance are always the same (or in colloquial speech - the amount the customer thinks they owe equals what they really owe). Let's run through a typical example. The values in the payoff balance and current balance columns reflect the amount due after the financial transaction has been applied (i.e., the running balance):
Date |
Financial Transaction |
Payoff Balance |
Current Balance |
1-Jan-99 |
Bill: $125 |
125 |
125 |
15-Jan-99 |
Payment: $150 |
-25 |
-25 |
2-Feb-99 |
Bill: $175 |
150 |
150 |
14-Feb-99 |
Payment: $150 |
0 |
0 |
3-Mar-99 |
Bill: $200 |
200 |
200 |
15-Mar-99 |
Payment: $150 |
50 |
50 |
2-Apr-99 |
Bill: $225 |
275 |
275 |
As you can see, payoff balance and current balance are always in sync.