Debts & Loans
Debts and credits are part of the net worth picture, and in Bluecoins they should be managed as such: as liability accounts.
Recommended setup
- Create an account of type Loan (or Credit Card, or Other) for the debt. Name it the creditor — “Car Loan”, “Credit Card”, “Loan from family”.
- The account starts at its current balance (negative, or use the “show as positive” display option).
- Paying the loan is a transfer from a checking/cash account into the loan account — it reduces the liability, and never counts as expense.
- Interest charged is recorded as a regular expense transaction in the loan account, with a category like “Interest”, so your bottom line reflects the true cost of borrowing.
Why this works with the reports
- The Balance Sheet / Net Worth card treats the loan as a liability: your net worth is computed against true assets minus liabilities.
- Daily summary and budgets exclude liability payments since transfers don’t eat into income.
- Cash flow reports show bill payments net of contributions… and reflect the net cash position after servicing debts.
- Upgrades: a loan with a fixed number of installments can be managed with Reminders — one reminder per payment, matching the schedule.
Warning
Avoid recording debt payments as expense: it double-counts the purchase (the expense was the original purchase) and distorts budget/expense reports. Use transfers.