In this article, the sections comprise:
- Definition
- Usage
a. How to create debt/loan transaction
b. How to manage debt/loan
c. How debt and loan work
1. Definition
In the MoneyLover financial management app, the debt and loan recording feature helps you manage outstanding financial obligations easily and effectively. This feature not only helps you keep track of your financial status but also reminds you of upcoming payments, assisting you in maintaining financial balance and avoiding unwanted late fees.
2. Usage
Let's start with the simple concept:
If you borrow money form other, you need to add a Debt. It's Payable transaction. You pay off your debt with a Repayment transaction.
If you lend other money, you need to add a Loan. It's Receivable transaction. When they pay off the loan, you will receive a Debt Collection transaction.
a. How to create debt/loan transaction
You can create a debt/loan transaction just like you would for a regular income/expense transaction. However, in the 'Select Category' section, switch to the 'Debt/Loan' tab and then select the appropriate category.
Additionally, on the Android operating system, you can go to the Account tab, select Debts, and then press the button to create a transaction.
b. How to manage debt/loan
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iOS device:
You can manage debt/loan transactions by going to the Account tab, selecting Debts, and choosing the debt/loan you want to add a payment or receive a payment for.
In the case of installment payments, you can adjust the amount for each cashback transaction. For example: if your friend owes you 5,000,000 VND and initially pays you 2,000,000 VND, when you press cashback, you should change the amount to 2,000,000 VND. The app will then automatically update the remaining loan balance to 3,000,000 VND.
You can also create a cashback transaction directly from the Transaction list by selecting the debt/loan transaction, then pressing the cashback button. Adjust the amount and press Save.
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Android device:
Similarly, on the iOS operating system, you can manage debt/loan and create cashback transactions from both the Transaction list and the Debts screen.
However, on the Debts screen, you need to press the Payable tab to select debt transactions and the Receivable tab to select loan transactions. Then press the Pay off/Receive button, enter the amount, and press to save the transaction.
Note: You are able to tag Lender (Debts) or Borrower (Loans) which help you notice about the transactions. MoneyLover will group all Debt from a Lender, that makes your Debts list organized. It's same on Loans list.
c. How Debt and Loan work
A Debt transaction is recorded as a Cash Inflow, so wallet balance increases.
For example:
- Your balance = $1,000
- Add a Debt = $1,000
- Your new balance = $2,000
In comparison, a Loan transaction is recorded as a Cash Outflow, so wallet balance decreases.
For example:
- Your balance = $1,000
- Add a Loan = $500
- Your new balance = $500