Interest only line of credit

Question

I have a Interest only line of credit.  How do I set this in Quicken so the monthly payments don't deduct from the balance due?  Monthly payment is interest only.

NotACPA · Answer

"'Quicken has no "interest only" loan set up wizard." ... because there's no need for such.Since the account is Interest Only, there's no need to calculate the amortization of your payments.And, your payments (your interest) will vary with the amount outstanding and WHEN those additional draws, or prior payments, were received and recorded by the lender.Q has no way of knowing  such dates.It's pretty much the same reason why the Loan  Wizard only works for "Monthly Interest" loans, such as a traditional mortgage, and not for "Daily Interest" loans such as auto loans and  your LOC.

Tom Young · Answer

A "line of credit" is pretty much like a credit card so you could either set it up as a "credit card" Account or a general "liability" Account.  In either case you'd simply enter your monthly interest payments in your checking Account, using an interest expense Category that you'd create.  Draws out of the line of credit or payments of principal against the line of credit would be entered as transfers, as needed.Quicken has no "interest only" loan set up wizard.