Debt can be an overwhelming topic. In fact, 55% of Americans are feeling more nervous about debt, according to the 2025 Wells Fargo Money Study*. Yet, developing an understanding of where you stand with your loans can be a critical first step toward financial independence.

Where do you begin? For starters, your loan statements provide helpful information to help you get a handle on your debt. This knowledge can be your ally in managing a mortgage, home equity loan, student loan, personal loan, or car loan, especially if you’re juggling multiple commitments.

Understanding your loan statement

Your loan provider typically includes essential information in each statement, such as (but not limited to):

  • Original principal amount: The initial sum you borrowed from your lender.
  • Current interest rate: Usually expressed as a percentage, this is the rate you pay to borrow money, and an important factor in the overall cost of your loan.
  • Current balance: How much you still owe. Keeping an eye on this amount helps you track your progress over time.
  • Fees assessed: Charges for late payments, insufficient funds, or additional services. Being aware of where you’ve been charged fees in the past can help you avoid unnecessary costs going forward.
  • Annual percentage rate (APR): This comprehensive rate, also expressed as a percentage, includes your interest rate, fees, and other financing costs. It helps provide a more complete picture of the total cost of your loan.
  • Breakdown of payments: How much of the principal and interest you’ve paid, usually presented as a year-to-date figure. This number can be a great way to see how far you’ve come in your repayment journey.
  • Total of payments: The sum of all payments made to pay off your loan by the end of its term, assuming you make all payments as scheduled.

Accelerate your debt repayment

Compare your current balance to the original principal to gauge your progress. Your statement shows how much of your payment goes toward paying off your principal each period. If you can, and your loan doesn’t have a prepayment penalty, consider directing a little extra to your principal payment each month. Doing so could help decrease the total cost of your loan - as you’ll owe less in interest - helping you pay off your debt faster. Consider tracking your spending to help you better manage your money and possibly contribute extra toward paying off your debts.

Continue to ensure your future payments are on time. Timely payments can be crucial for maintaining a good credit score and avoiding late fees. If you feel you may encounter a delay in payment, reach out to your loan provider ahead of your payment date to explore your options.

Explore Wells Fargo’s tools and strategies

Taking the time to understand your loan statements means you’re not just managing your debt — you’re taking control of your financial future. Wells Fargo is dedicated to supporting your financial journey with resources and tools designed to help you achieve your financial goals.

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