How to manage loan

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Cobra
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How to manage loan

Post by Cobra »

I would like some suggestions for handling a situation like this example:
The bank gives me a loan of € 1000.
So I have a positive balance of +1000 in my bank account.
How do I register it?
1) Balance 0 on a Loan account
2) Then a transfer of 1000 from the loan account to the bank account.
Now I have the loan account at -1000 and the bank account at +1000.

From the point of view of money it is correct, but in reality there are also some interest that I have to repay.
I now have 1,000 and in three years it will be 1,200.
Where do I register those 200?

Among other things, the agreement with the bank is that the installments do not all have the same value, they are initially smaller and then grow.
It will not be easy to manage an automatic operation,

Thanks in advance.
Thanks in advance for any advice and help.

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OttoGabriel
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Re: How to manage loan

Post by OttoGabriel »

The money you owe the bank is where you record it. I.e, The principal which is the loan plus the interest. Most loans Compound annually. Then the banks have their automated systems of recording. For your personal finance accounting purposes, just credit it to the Loans.
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