How to calculate your bank loans

Debt accounts are frequently used for the calculations regarding bank loans. Unfortunately this method is not very convinient and intuitive. The cash flow evaluation on such accounts is often hindered because debt acts as a money transfer which does not change the overall account balance.

Our advice would be the following: try using regular accounts to calculate your bank loans. Make a bank loan account with the negative balance that is equal to the amount you owe to the bank. Also make sure that you make an expenditure of the interest payable to the bank.

Now managing your bank loan is a breeze:

1) You owe 100000 to the bank. Make an account that has a balance of -100000
2) You made a payment of 10000 and your overall account balance has now changed to -90000.
3) Your loan statement now says that you owe 92000. Next step will be counting the interest that you paid to the bank. 92000 - 90000 (your CoinKeeper account balance). The amount of interest that we paid to the bank (2000) now should be transfered to the expenditure of interest. After debiting the aforementioned article, which allows you to see the amount of interest paid to the bank, you will end up with -92000 on your regular loan account.

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