The outstanding balance is the total amount of money still owed on a debt or loan. This includes both the original borrowed principal and any accrued interest or fees that have not yet been paid. The outstanding balance decreases as regular payments are made, but it can increase if additional charges or missed payments are added. Keeping track of the outstanding balance is important for financial planning, as it reflects the remaining financial obligation to the lender. It is commonly used for credit card debts, loans, and mortgages.