Author Topic: Accrued versus paid interest  (Read 2404 times)

YellowSeed

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Accrued versus paid interest
« on: October 23, 2012, 05:36:15 PM »
On my landing page, LC proudly announces I have received $1,000,000 in interest, but further down the page it states that I have only $800,000 in accrued interest.  How could I possibly have more interest paid than accrued?  Is the billing for borrowers such that they are pre-paying interest?

Any thoughts?

Peter

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Re: Accrued versus paid interest
« Reply #1 on: October 23, 2012, 06:35:59 PM »
Accrued interest is a little confusing. It really only includes interest that your have "earned" in the current month that has yet to be received from the borrower. As soon as it is received from the borrower it is deducted from your accrued interest amount.

I am guessing yours is a relatively new account is that correct?

Here is the definition of accrued interest from LC's site:
Accrued interest is the interest that has accrued by the Notes you hold, but that has yet to be collected in a future payment from the borrower. When the payment is received, interest is then realized and deposited in your account.
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See my returns here: http://www.lendacademy.com/returns

YellowSeed

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Re: Accrued versus paid interest
« Reply #2 on: October 23, 2012, 07:06:45 PM »
Ok that makes sense; yes my account is relatively new.

I was thinking that the accrued interest balance was the total amount of interest accrued on loans to date.

Thank you.