Loan Payments

Again this may be an easy answer, but I am stuck. I want Money to calculate
and track automobile loan payments. Setting up the account is no big deal,
but mid-way through the loan I increased the monthly payment in efforts to
pay down the principal. So for example, my loan payment is $239 and the
first payment date was Mar 2005. Starting Aug 2006, I increased the payment
to $250. How can i account for this to show a reduction in the principle
amount due? Thanks

What you do is edit the loan payments and/or the scheduled loan payment to
add an additional Principal Transfer line in the split that has the
pre-defined and calculated Principal Transfer and interest expense. So now
it would have three elements, two of which would be Principal Transfer, one
of which it calculates and one of which is the difference between the loan
payment when you setup the loan and the one you are making.

There may be some differences in exactly how to do this depending on what
version of Money you use. These directions should work for M05 and up. But
the principle is the same going a long way back.

"craigw79" <craigw79@discussions.microsoft.com> wrote in message
news:5A8A73EF-1D03-4241-9325-2C5A3DBA7B04@microsoft.com...
> Again this may be an easy answer, but I am stuck. I want Money to
> calculate
> and track automobile loan payments. Setting up the account is no big
> deal,
> but mid-way through the loan I increased the monthly payment in efforts to
> pay down the principal. So for example, my loan payment is $239 and the
> first payment date was Mar 2005. Starting Aug 2006, I increased the
> payment
> to $250. How can i account for this to show a reduction in the principle
> amount due? Thanks

In your example, that August 2006 payment would be split something like:

Principal Transfer : [name of loan account] $204.50 (it puts this in)
[Whatever interest category you told it to use] $34.50 (it puts this in)
Principal Transfer : [name of loan account] $11.00 (you add this in)
(total transaction amount) $250.00

"craigw79" <craigw79@discussions.microsoft.com> wrote in message
news:5A8A73EF-1D03-4241-9325-2C5A3DBA7B04@microsoft.com...
> Again this may be an easy answer, but I am stuck. I want Money to
> calculate
> and track automobile loan payments. Setting up the account is no big
> deal,
> but mid-way through the loan I increased the monthly payment in efforts to
> pay down the principal. So for example, my loan payment is $239 and the
> first payment date was Mar 2005. Starting Aug 2006, I increased the
> payment
> to $250. How can i account for this to show a reduction in the principle
> amount due? Thanks