Loan Accounts
A Loan account is used to track a loan with regularly scheduled payments, a known interest rate, and a fixed starting debt. When you open a loan account in Moneydance, you can add the principal of your new loan to the balance of another account. This is purely optional and does not affect the operation of the loan account.
When creating a loan, you will have the option of scheduling a recurring transaction for your loan payment. If you do this, Moneydance will be able to keep track of how many payments have been made, how many are left, and other useful information such as ratio of interest to principal. If you are manually entering your loan payments, Moneydance will not be able to provide as much of this detailed information. Therefore we strongly recommend you use automatic transaction scheduling for loan accounts. Note that you do not have to use electronic payment scheduling or online bill payment in order to utilize these features. Moneydance can simply prompt you to create Transaction Reminders for loan payments, detailed in Chapter 7: Reminders.