How Paying Off A Loan Can Turn Into Lost Money
our loan refund may become lost money, but you won’t even know it unless you put in the work to find out. Every year we Americans nationwide attempt to pay all of our loans off early. Car loans, house loans, loans to start up businesses – these are the loans that keep our economy going. Yet the interest rates on these loans can be sky-high, especially if the person doesn’t have the best credit. In an effort to save money, the Americans that are able to are paying off their loans early, thus eliminating much of the interest charges. What most of these former loan holders don’t realize is that paying off loans early is one of the primary reasons lost money exists. Let’s take a deeper look into this phenomenon to determine if you are one of those lucky former loan holders.
Paying Loans Off Early
When a homeowner pays off a loan early, they typically look at their statements to calculate the amount needed. This can result in miscalculations, often resulting in the loan holder overpaying for the loan completely. The person who pays thinks that the loan is free and clear and forgets about it. Little does that person know, there is now a check out there that amounts to lost money from an overpaid loan. This teaches us to always call the loan holder and request the exact pay off before paying anything off in full ever to keep situations exactly like this from happening.
You should now be starting to begin to see how your loan refund may become lost money. When you fail to collect that refund from the loan company, that money gets sent to the state treasury’s office in the state in which you reside. I mean let’s face it, it is not like the loan company is going to go out of its way, taking time and money to contact you about lost money that is currently collecting interest in their own accounts. This lost money will then rest in an account until it is claimed by the rightful owner. Which means you may also be owed any and all the interest that the money collected depending on what type of account holder was servicing the actual loan.
With all of this knowledge and information about lost money at our finger tips it is now incredibly simple to check and see if any of it might actually belong to you or any of your loved ones. So if you have ever paid a loan off in the past, even if it’s been ten, twenty or even thirty years, you really have nothing to lose by searching for it. Just think about it, you could be sitting there thinking of ways to cut expenses in order to save more money and you might have lost money that might be rightfully yours just sitting out there waiting for you to claim it. You could find out that you overpaid by thousands of dollars which in return would be a very nice payday indeed.