Listen to a Business English Dialogue About Previous balance
Ella: Hi Zoey, have you ever come across the term “previous balance” in finance?
Zoey: Hi Ella! Yes, the previous balance refers to the amount owed on an account at the end of the previous billing cycle.
Ella: That’s right. It includes any unpaid balances from previous billing periods and serves as the starting point for calculating interest charges and minimum payments.
Zoey: Exactly. Lenders use the previous balance to determine the finance charges and to assess the creditworthiness of the borrower.
Ella: Right. It’s essential for borrowers to monitor their previous balances to understand their overall debt obligations and manage their finances effectively.
Zoey: Absolutely. By staying aware of their previous balances, borrowers can make informed decisions about their spending and repayment strategies to maintain a healthy financial standing.
Ella: Agreed. Additionally, keeping track of previous balances helps individuals avoid accumulating excessive interest charges and falling into debt traps.
Zoey: Yes, and it’s crucial for borrowers to review their billing statements regularly to ensure accuracy and address any discrepancies in their previous balances.
Ella: Absolutely. By being proactive and vigilant, borrowers can stay in control of their finances and work towards achieving their financial goals.
Zoey: Indeed. Understanding the concept of previous balance empowers individuals to make informed financial decisions and maintain financial stability in the long run.
Ella: Definitely. It’s an essential aspect of personal finance management that can have a significant impact on an individual’s overall financial well-being.