👉 Underprincipal is a financial term that refers to an amount of money owed by a borrower, which is considered "under" the principal amount. It typically represents a portion of the loan balance or any other outstanding debt. In essence, it's like taking out a loan but not actually paying back the full amount. Underprincipal can be used in situations where there's a difference between what's borrowed and what's owed by the borrower. For example, if you borrow $500 to buy a
