We have a great Loans account feature for customers who wish to track their loans in MoneyWiz. Our current setup for that account requires an APR (Annual Percentage Rate) value. However, not all loans have an APR (or interest) therefore the following workaround can be used. Additionally, you may prefer to not track the principal and interest separately, which is a main function of the Loan account.
If you're looking to track a small, personal loan, you might be interested in this guide instead.
Create the account
Begin by creating your loan account. Note that you should not choose the Loan account but Credit card account. While the naming might not be entirely accurate you should choose this type of account for technical reasons as it’s the best fit for what we are about to do.
When creating a Credit card account, you need to provide:
- the name of the account – choose anything that will help you identify this loan on the accounts list
- credit limit – enter your full loan amount, without a minus (it’s not even possible to enter a negative value here). So if you got a loan for $1000 then enter 1000 here.
- current balance – the value to be entered here depends on the date you want to start monitoring the account from:
- If this date is before you started paying the loan off, then the opening balance is also the full size of the loan, but with negative sign. In our example above, the value of current balance would be -1000.
- If you do not plan on entering past transactions in MoneyWiz, for current balance enter your current balance as you see it in your online banking. You need to keep the minus sign in MoneyWiz, regardless of whether you see it in your online banking or not. In our example, if we managed to repay $300 so far, we’d enter -700 as the current balance.
Other details of the account (like account icon) can be set as described in Manage Accounts and Groups guide.
We can use regular Scheduled transactions to schedule an automatic payment towards your new account. The Scheduled transaction needs to be a Transfer type from account making the payment (probably your main Checking account) towards the new account account.
The Loan account feature allows for a special type of Scheduled transfer – one that can have categories assigned which is useful for reporting. Since we are not using this type of account, your Scheduled transfers will not have a category assigned. However, it’s easy to work around this by using Tags instead of categories.