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Income Contingent Loan RRS feed

  • Question

  • This is possibly a bit of a stretch but does anyone know if it is possible/how to create an income contingent loan on Money? My loan repayments are not due on certain dates, I only pay if I've earned enough money that month... Is it possible to create a loan like this on Money or is it only monthly repayment loans and total value tracking? 

    I'm new to Micr. Money and any advice would be appreciated!

    Wednesday, April 11, 2018 1:27 PM

All replies

  • When you have Money create a Loan, it expects that you will have some kind of schedule. Instead, you can create a Liability Account. From the Account List, click Add a New Account -> Other ->Liability. I would select to just track the total value, with an initial value of 0.00. You still can and will enter transactions into the register.

    (If you don't already have a Shortcut to the Account List, I suggest you make one. I have Money open up to the Account List. That is Tools->Settings->ProgramSettings->(Display:)StartMoneyWithThisPageOpen:AccountList in Money Plus)

    In a Liability account, the amount columns are labeled Increase, where you increased the debt. Amounts under Decrease would typically be payments to the lender.

    In there, enter the transaction. For example, you might transfer the money from that account to your checking account if appropriate. If you bought a car with the money, you could just enter the buy as an expense in the Increase column.

    That account will normally show as a negative number in the Balance column in the Account List. Once the loan is paid off, the balance should be zero. You could then mark the account as closed, if you like.

    Wednesday, April 11, 2018 6:18 PM
    Moderator
  • You could create a loan with monthly repayments, but opt to skip the earliest entry in the Bills Summary when you have not earned enough in any month. Right click on the scheduled payment in the Bills Summary and choose the relevant option.

    If the repayment amount, not just the repayment date, is variable you can edit an individual repayment amount and/or the series scheduled amount there.

    Wednesday, April 11, 2018 10:28 PM