Interest Expense

sycamore1234
sycamore1234 Member ✭✭
Quicken - why when I mark a payment as interest expense on a line of credit, does it always show up in my quicken register as a reduction in the principal balance? Every month I have to add back the interest expense to properly reflect the line balance. Am I doing something wrong?

Comments

  • John_M
    John_M Member ✭✭✭✭
    edited February 12
    It sounds like you may have your loan account in the transfer field. If you are paying interest and principal, you would see a split like this for my mortgage.

    If you are paying interest only, there would be only one line, but there might be something in the transfer field that is not visible in the register. Open your transaction, click on "Edit Details" and then "Splits." If your loan account is in the transfer field (third one over), delete it. Then it will not transfer your payment to the loan account each month. Of course, the transaction should have your interest category in the first field.

    If you start paying principal as well as interest on the loan, you'll need to set up a split with the loan account in the transfer field.
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