How to deal with Debts??



Hi, I have a debt of $24000 in 6 payments, i.e. $4000/month. I opened an
account in Money with $24000 debit, and have set 6 auto-transfers so that I
can clearly remind myself when to pay the debts and the balance left.
However, when I set auto-transfer, it will not treat it as a bill and
therefore I cannot choose the Catagory. How can I include the debt payment
in the Budget Catagory so that I can view comprehesive how much each month
i'm gonna spend? Thank you!



Dick Watson

The issue here is that this looks to Money as cash flow neutral. You're
taking money from an asset and applying it to a liability. Since Budget
Planner is tailored to manage Income and Expenses, and this is neither, you
have the issue you cite.

The budget will deal with this in the Debt category if you create the
account as a loan and the payment transfer as a Loan Payment.

Alternately, schedule the bill as some expense category, set the budget up,
and change it to a transfer when you go to enter the transaction in the

Alternately, accept that the "savings" in your budget (Income - Expenses)
needs to be more than your planned debt payment.




My advice is to forget using the loan account feature in Money. All it does
for you it seems is to give you an amortization schedule and a lot of hassle.
By personal experience with too many loans, loan accounts aren't well
supported: for example, try to export one or save the loan terms.

What I do is to set up a liability account for money I owe. Each payment
goes in there and when I look at the bank statement I can enter the actual
interest charged, which has to be done anyway because each bank seems to use
a different set of terms (360 days or 365 days or 365.25 days per year, for
example). You can memorize the transactions as recurring bills, and then
adjust them later, if you like.

And if you really want an amortization schedule, then buy a used HP12C,
which is so simple and good I bet "the Donald" or Sir Virgin uses one.

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