What is the difference between principal and outstanding debt?



When you want to take out a loan, you will be greeted by a jumbled expression that can all help to make the process an unmistakable and confusing experience for you.

Of course, no one claims that the loan market is easy to navigate. If you do not take out a short-term loan, you typically have to set aside time to get into the market. In this way one can best predict the market trends and is in a situation where one is able to make complicated choices. For example, whether to choose a loan with a fixed or a variable interest rate.

If you choose to borrow from us, you can remove some of these concerns. A loan with us lasts a maximum of 30 days and we use a fixed interest rate. Therefore, you are not bound to us or to the loan for a long time. For example, you will not be affected by fluctuations in the market. Therefore, you do not need to study the market to the same extent.

This really means that if you have short-term loan needs, you can instead focus on finding the loan provider that best meets your needs.

However, concepts such as the APR, interest rates, foundation costs, principal and outstanding debt will still be very important to be aware of. This applies no matter what type of loan you want to take out.
However, it should be mentioned that the APR and the loan interest rate can be misleading for the real cost of our loans, as these are typically far higher than the real interest rate you pay with us.

Principal and outstanding debt

Principal and outstanding debt

When you take out a loan, the amount you initially lend will be designated as the loan principal. However, the principal is a slightly more complicated size, and can really say to consist of four parts, namely foundation costs, proceeds and capital losses.

When you take out a loan, the amount you need to borrow will be referred to as the loan proceeds. However, there are typically a number of costs associated with taking out loans, including foundation costs, which is why you end up borrowing more than your initial needs as these costs need to be covered. The sum of the proceeds and these costs is what is referred to as the principal of the loan.

The principal does not change during the life of the loan unless the loan is converted and can therefore be categorized as a fixed amount. This means that the principal does not change, even though the loan is paid off.
The concept that deals with this aspect is debt, which is also an appropriate and more descriptive word in this context. That is to say, the outstanding debt reflects the amount that remains to be repaid before the loan can be considered repaid.

Fast, easy and cheap

Fast, easy and cheap

If you think this all sounds a bit complicated, we can only give you the right. This is exactly why you never experience hidden costs and fees when you choose to borrow from us. We believe that it should be as easy and clear as possible for the loan to meet its needs when these arise.

If you have not previously taken out a loan with us, we even offer you a first loan of up to SEK 6,000 with a 50% discount .

This focus on customer needs has been taken care of by our customers, which is why we have achieved a 5-star profile on GoodTrust. In addition to serving as a stamp for the guarantee of our product and service, it is your proof that we live up to or exceed our customers’ expectations when borrowing from us.

Credit amount 6000, – Maturity 12 months Total credit costs. 7908, – Mdl. maximum payment 1716, – Total repayment 13908, – ÅOP 816.67% Debt rate / annual fixed: 243.3%. 14 days cancellation right on the credit agreement. Age 20+.

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