Question by  Riley (765)

What is a deficiency balance?

I was told I owed a deficiency balance.


Answer by  dakasimba (26)

A deficiency balance is when you have spent more money than you have in your account. For example if you have $100 in you account and you buy something for $200 your balance is -$100. This is a deficiency balance. It means you balance is in the red.


Answer by  kak (488)

Unfortunately, if you have a repossession, you may still owe a balance to the lending institution. Some states can garnish your wages. Try to make a plan with the lender.


Answer by  tamarawilhite (17883)

When what you owe is greater than the money the lender received in selling the property on which you owed money (like a house or car), the difference between the debt and the money they got is the deficiency balance. And they want you to pay that difference.


Answer by  tamarawilhite (17883)

If a debt was owed and the payments made do not cover the entire debt, then the amount still owed is the deficiency balance.

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