Do not let debts and loans get out of control, manage them with Money Lover!
First, let’s get started with these simple concepts:
If you borrow money from other, you will need to add a Debt. It is a Payable Transaction.
If you lend other money, you will need to add a Loan. It is a Receivable Transaction.
How Debt works
For example, you borrow your friend Ben $100. Ben gives you $100 in cash.
In your Cash wallet, you add a Debt of $100. A Debt transaction is recorded as a Cash Inflow so your balance increases by $100.
Your initial balance: $1000
Add a Debt: $100
Your new balance: $1100
You can set the name of the Lender as Ben and activate Reminder so you will not forget to pay him back.
When you manage to pay Ben back, touch Cashback.
How Loan works
Now Ben borrows you $200, you give him $200 in cash.
In your Cash wallet, you add a Loan of $200. A Loan transaction is recorded as a Cash Outflow so your balance decreases by $200.
Your initial balance: $1000
Add a Loan: $200
Your new balance: $800
You can set the name of the Borrower as Ben and activate Reminder to remind him to pay you back.
When Ben pay you back, touch Cashback.
Purchase on Credit
For example, you buy an old book at $50 from Ben but you will not have to pay him back until next month. Here is what you will record in Money Lover:
Add an expense of a Book: $50
Add a Debt: $50
The balance of your wallet will not change until you pay back $50 to Ben.
After you touch Cashback, your balance will decrease by $50.
Do you have any feedbacks on Money Lover's Debts and Loans feature? Give us a comment below to let us know!