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.
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