To simplify, I do not consider the interests, but only the amounts.
Case 1: Loan
John lends me €1,000 which I pay back €100 per month.
However, I could still apply for a loan and therefore the account remains open.
Case 2: Debt
I owe €1,000 to Dave which I pay back €100 a month.
Once the debt is extinguished, the account can be closed.
Case 3: Installments
From the ACME supplier I purchase services every month that I pay regularly.
However, an invoice is very high and I agree to pay it in 3 installments; meanwhile, I pay the other new bills regularly.
I thought of creating:
- A bank account
- A loan account for John
- A term account for debt for Dave
- Three categories: John, Dave, ACME
I transfer money from the bank account to these two.
I record the ACME invoices every time I pay them, but I have no idea how to record the installment since it is a new short-term debt.