Velkajäämiä

Velkajäämiä refers to the outstanding balance of a debt. It represents the amount of money that a borrower still owes to a lender after some payments have been made. This term is commonly used in financial contexts, particularly in loans, mortgages, credit cards, and other forms of credit. When a loan is taken out, the initial amount borrowed is the principal. As the borrower makes payments, a portion of each payment typically goes towards reducing the principal, while another portion covers interest. The velkajäämiä is the remaining principal balance that has not yet been repaid.

The velkajäämiä decreases over the life of a loan as more payments are made. It is a key figure for both the borrower and the lender. For the borrower, it indicates how much longer they need to make payments and how much they still owe. For the lender, it represents the outstanding exposure and the remaining potential for interest income. In some cases, such as with variable-interest loans, the velkajäämiä can also be affected by changes in interest rates, though the core concept remains the amount of debt still outstanding. Understanding the velkajäämiä is crucial for managing personal finances and for lenders assessing credit risk.