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How to read my personal loan statement

A personal loan statement is like a progress report for a loan. It shows how much money you borrowed, how much you’ve paid back in the period, and how much you still owe. It also tells you when your next payment is due and if there are any extra costs. It’s a simple way to keep track of your loan so you can see how you’re progressing. 

In this article we’ll run through each section of your Personal Loan Statement in detail so you can be confident you’re managing your loan like a pro. 

Navigating your statement

Loan Details

In the top right corner of the statement, you’ll see all the particulars of your Handy Finance loan. Most of this data is static and will reflect the terms agreed in your contract.  

The “Next payment date” shown at the bottom of the list will change with each statement and shows when your next scheduled payment is due, relative to the date of issue of the Statement.  

Account Summary

In the middle of the first page, you’ll find your Personal Loan Statement Summary. At the top left of this section, you’ll find the month for which the statement covers. Handy Finance personal loan statements are always provided for a period of one calendar month and are issued on the 1st of the following month. For example, an October 2024 statement would be issued on the 1st November 2024. 

In the grey box on the right-hand side of this section, you’ll find the summary of your statement. This shows the balance of your loan at the beginning of the statement period “opening balance” and the balance at the end of the statement period “closing balance”. Please note that your closing balance may not be the same as your payout figure, this is because repayments and/or interest that occur since the statement was issued will not be included in the closing balance. 

Finally, the totals for “interest paid” and “principal paid” for the period of the statement are also shown. Principal is the original amount of money you borrowed, not including interest, and therefore principal paid is the contribution you have made to paying back the principal amount within the statement period. “Interest paid” is the amount of interest you have paid on your loan account during the statement period. 

Transaction Details

The last section in your Personal Loan statement is the transactions table. This lists, in chronological order, all transactions made on your loan account throughout the statement period which is shown at the top right corner of the table. 

Each line item within the table is either a Debit or a Credit, and the resulting impact on your loan account balance is shown in the final column of each line. Your loan account balance is shown as negative as it is money owning to Handy Finance.  

Debits are line-items where the balance, and therefore the amount owning, increases. This is typically in the form of interest charges. Credits are line-items where the balance reduces towards zero, at which point no funds are owning. These are typically repayments made on your loan. Direct debit repayments, and additional BPAY repayments will be distinguished separately on your statement. 

Interest on your loan is accrued daily but is reflected as an accumulated charge on your statement at each point a payment is made. Therefore, you will see two line-items on the same date, a Credit for the loan repayment and a Debit for the interest charge. The interest charged within a line item therefore reflects the amount of daily interest accumulated between the last time interest was charged, and the present one. 

When a repayment has been missed, this will be included in the transactions table as a line item, though neither a Credit or Debit amount will be shown as no payment has been made and therefore the balance will be unchanged. Should a missed repayment fee apply this will be reflected in a separate line item, as will any other fees charged as part of your loan account. 

In instances where transactions are reversed, such as an overpayment, these will also be reflected on your statement. Both the repayment amount and interest charged as part of the original transaction will be reversed at the same time, showing up in the opposite Debit and Credit column to the amounts in the original transactions. In occasions where there are other transactions that have occurred since the transaction(s) required to be reversed, all transactions that occurred between the date of reversal and the date of the transaction to be reversed will be reversed and then reinstated as required. Following the reversals, an interest charge and “Loan balance adjustment” will occur to reconcile your balance. 

Approvals are subject to Handy Finance’s credit criteria and responsible lending requirements. Fees, charges, terms and conditions apply. Finance provided to approved applicants by OurMoneyMarket Lending Pty Ltd ABN 64 605 231 669, trading as ‘Handy Finance’ holds Australian Credit Licence number 488228 and is a member of the Australian Financial Complaints Authority (AFCA). The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, we recommend that you consider whether it is appropriate for your circumstances. We recommend you obtain independent advice before acting on any information in this article.