Simple method for handling payments on an interest-free loan

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1

I recently took out a 10-year interest-free loan from my electric utility for some energy efficiency improvements. Each month, the loan payment will be included on my electric bill.

I want to track the amount remaining on the loan balance, and include that as a liability. I plan to create a manual account for this.

Ideally, each month when I pay the electric bill, I’d like the (fixed) payment portion of the bill to automatically reduce the balance in this account. Is there a simple way to handle this?

Thanks in advance.

2

@yotommy, good question. Good idea to have your electric bill reflect your actual spending.

I bet there are many community members here with good ideas.

I am thinking I would
Set up a manual account for the loan. Give it it’s own account number that you make up.
When the electric bill comes, split the transaction between electric and loan payment.

Since I haven’t actually done it yet, I’ll be interested to see how others have handled this.

-Alice
Tiller Evangelist

Bluesky, Instagram, Facebook, LinkedIn

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Thanks, Alice. What I haven’t figured out is how to have the loan payment reduce the balance in the manual loan account. Any thoughts or ideas are welcome!

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@yotommy I can’t think of a way to automatically manipulate a manual account in that way. I believe it will have to be manual balance updates once a month.

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