DRP = Debt Reduction Planner

--
Regards
Bob Peel,
Microsoft MVP - Money

For UK tips & fixes see
http://support.microsoft.com/default...d=fh;EN-GB;mny.
For wishes or suggestions see
http://register.microsoft.com/mswish/suggestion.asp
or for UK wishes http://www.microsoft.com/uk/support/money/feedback

I do not respond to any emails that I have not specifically asked for.

"Bob Brannon" <bbran[at]3rivers.net> wrote in message
news:OzW8zrahFHA.1248[at]TK2MSFTNGP12.phx.gbl...
What is DRP?

"harrelsonesq" <harrelsonesq2[at]yahoo.com> wrote in message
news:O$bekjPhFHA.3656[at]TK2MSFTNGP09.phx.gbl...
You touched upon the only thing I don't like about treating the HELOC as a
credit card. I'm trying to pay down my credit card debt, and using the DRP.
However, I do not put the HELOC in there, because, to me, it is "good" debt,
read deductible debt, as opposed to "bad" nondeductible debt, and I treat
that differently.

I frequently want to look at my total credit card debt, to see how I'm
doing, but the HELOC being in there skews the total up, so it always looks
like I haven't done *anything*. It's a minor annoyance, requiring only a
mental adjustment, but it's a constant reminder that the HELOC= CC kludge
really isn't a solution.

Entering the interest manually isn't that big a deal. It works better,
though, if you do it in the register, and not during balancing, which I
found confusing.

Susan

"Chris Cowles" <NoSpam[at]For.me> wrote in message
news:OjBbN9OhFHA.1248[at]TK2MSFTNGP12.phx.gbl...
- quote -

Well, that's **another** reason a Money loan won't work--they're for loans
with fixed payment amounts.

Personally, I'd think it less trouble and surely more likely to be accurate
to just keep it a Credit Card and enter the interest expense transactions by
hand from the statements.

"Bob Brannon" <bbran[at]3rivers.net> wrote in message
news:uNgG0rahFHA.1248[at]TK2MSFTNGP12.phx.gbl...
I thought about that but that won't work either. I am making a fixed
payment to the principal and then another for whatever the interest is each
month.

I thought about that but that won't work either. I am making a fixed payment to the principal and then another for whatever the interest is each month.

"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in message news:uchemYOhFHA.3340[at]TK2MSFTNGP10.phx.gbl...
If you really want to make it a loan, then you have to set the payments
correctly. Put in the balance, the length of time you want to spend paying
it off and the interest rate. Money will **calculate** what the payment
needs to be. Or omit the length of time and enter the payment you want to
make and Money will **calculate** how many payments it is going to take.
Once this is done, Money can compute loan payment splits that will
automagically split into a principal transfer component--which reduces the
balances--and a calculated interest expense.

Personally, I'd think it less trouble and surely more likely to be accurate
to just keep it a Credit Card and enter the interest expense transactions by
hand from the statements.

While it would be really nice if Money let us schedule payments with the
split amounts calculated as some function of other data, the only case it
can do this is Loan Payment. And that's just pretty inflexible.

"Bob Brannon" <bbran[at]3rivers.net> wrote in message
news:%23mQSyMOhFHA.3448[at]TK2MSFTNGP12.phx.gbl...
That is not going to work. The way it is setup now is as a credit card.
The problem is, Money subtracts the interest payment from the principal so
it looks like I owe less than I do. How do I get around this so principal
goes to principal but the interest goes to interest?

What is DRP?

"harrelsonesq" <harrelsonesq2[at]yahoo.com> wrote in message news:O$bekjPhFHA.3656[at]TK2MSFTNGP09.phx.gbl...
You touched upon the only thing I don't like about treating the HELOC as a
credit card. I'm trying to pay down my credit card debt, and using the DRP.
However, I do not put the HELOC in there, because, to me, it is "good" debt,
read deductible debt, as opposed to "bad" nondeductible debt, and I treat
that differently.

I frequently want to look at my total credit card debt, to see how I'm
doing, but the HELOC being in there skews the total up, so it always looks
like I haven't done *anything*. It's a minor annoyance, requiring only a
mental adjustment, but it's a constant reminder that the HELOC= CC kludge
really isn't a solution.

Entering the interest manually isn't that big a deal. It works better,
though, if you do it in the register, and not during balancing, which I
found confusing.

Susan

"Chris Cowles" <NoSpam[at]For.me> wrote in message
news:OjBbN9OhFHA.1248[at]TK2MSFTNGP12.phx.gbl...
- quote -

You touched upon the only thing I don't like about treating the HELOC as a
credit card. I'm trying to pay down my credit card debt, and using the DRP.
However, I do not put the HELOC in there, because, to me, it is "good" debt,
read deductible debt, as opposed to "bad" nondeductible debt, and I treat
that differently.

I frequently want to look at my total credit card debt, to see how I'm
doing, but the HELOC being in there skews the total up, so it always looks
like I haven't done *anything*. It's a minor annoyance, requiring only a
mental adjustment, but it's a constant reminder that the HELOC= CC kludge
really isn't a solution.

Entering the interest manually isn't that big a deal. It works better,
though, if you do it in the register, and not during balancing, which I
found confusing.

Susan

"Chris Cowles" <NoSpam[at]For.me> wrote in message
news:OjBbN9OhFHA.1248[at]TK2MSFTNGP12.phx.gbl...
- quote -

It calculates the effect of interest on your pay-down rate and trades off
the various interest rates to pick the least cost payback scenario across
multiple accounts. I don't believe it will compute an amount for interest
expense that actually winds up in a register. I haven't played with DRP in a
long time though and could be wrong.

"Chris Cowles" <NoSpam[at]For.me> wrote in message
news:OjBbN9OhFHA.1248[at]TK2MSFTNGP12.phx.gbl...
- quote -

The DRP calculation won't be accurate enough for this application.

--

"Chris Cowles" <NoSpam[at]For.me> wrote in message
news:OjBbN9OhFHA.1248[at]TK2MSFTNGP12.phx.gbl...
- quote -

Has anyone tried the DRP for this scenario? Does it not assume and calculate
interest? I have no experience with it, so have no idea. I just got a HELOC
for the first time and intend to pay it off at a certain defined time, but
haven't incurred any actual debt yet so don't know how it will work.
--
Chris Cowles
Gainesville, FL



"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:uchemYOhFHA.3340[at]TK2MSFTNGP10.phx.gbl...
- quote -

If you really want to make it a loan, then you have to set the payments
correctly. Put in the balance, the length of time you want to spend paying
it off and the interest rate. Money will **calculate** what the payment
needs to be. Or omit the length of time and enter the payment you want to
make and Money will **calculate** how many payments it is going to take.
Once this is done, Money can compute loan payment splits that will
automagically split into a principal transfer component--which reduces the
balances--and a calculated interest expense.

Personally, I'd think it less trouble and surely more likely to be accurate
to just keep it a Credit Card and enter the interest expense transactions by
hand from the statements.

While it would be really nice if Money let us schedule payments with the
split amounts calculated as some function of other data, the only case it
can do this is Loan Payment. And that's just pretty inflexible.

"Bob Brannon" <bbran[at]3rivers.net> wrote in message
news:%23mQSyMOhFHA.3448[at]TK2MSFTNGP12.phx.gbl...
That is not going to work. The way it is setup now is as a credit card.
The problem is, Money subtracts the interest payment from the principal so
it looks like I owe less than I do. How do I get around this so principal
goes to principal but the interest goes to interest?

That is not going to work. The way it is setup now is as a credit card. The problem is, Money subtracts the interest payment from the principal so it looks like I owe less than I do. How do I get around this so principal goes to principal but the interest goes to interest?


--

Regards,
Bob Brannon


"Bob Brannon" <bbran[at]3rivers.net> wrote in message news:eg4zWgygFHA.2560[at]TK2MSFTNGP10.phx.gbl...
I need the interest calculated automatically and I want it more simple that a credit card account. So I will set it up as a loan, because I will no longer be borrowing against it anyway. Unless someone else has a better idea. Money should have a means to have a line of credit automatically calculate the interest.

"Chris Cowles" <NoSpam[at]For.me> wrote in message news:eFt%23iZpgFHA.576[at]TK2MSFTNGP15.phx.gbl...
It is essentially a revolving loan, so a credit card is the correct setup.
Interest paid against cannot calculated automatically, I don't think. Just
record the interest as an expense transaction, as you would interest on a
credit card.

The Debt Reduction Planner may aid in your goal if you want to treat it as a
scheduled loan with a specified payoff date. I have no experience with that
function.
--
Chris Cowles
Gainesville, FL



"Bob Brannon" <bbran[at]3rivers.net> wrote in message
news:uU7EDOmgFHA.1148[at]TK2MSFTNGP12.phx.gbl...
Hello,

How does one set up a line of credit account? A credit card account doesn't
seem to work because I can't find a way to have Money account for the
interest paid against it.

Regards,
Bob Brannon

I need the interest calculated automatically and I want it more simple that a credit card account. So I will set it up as a loan, because I will no longer be borrowing against it anyway. Unless someone else has a better idea. Money should have a means to have a line of credit automatically calculate the interest.

"Chris Cowles" <NoSpam[at]For.me> wrote in message news:eFt%23iZpgFHA.576[at]TK2MSFTNGP15.phx.gbl...
It is essentially a revolving loan, so a credit card is the correct setup.
Interest paid against cannot calculated automatically, I don't think. Just
record the interest as an expense transaction, as you would interest on a
credit card.

The Debt Reduction Planner may aid in your goal if you want to treat it as a
scheduled loan with a specified payoff date. I have no experience with that
function.
--
Chris Cowles
Gainesville, FL



"Bob Brannon" <bbran[at]3rivers.net> wrote in message
news:uU7EDOmgFHA.1148[at]TK2MSFTNGP12.phx.gbl...
Hello,

How does one set up a line of credit account? A credit card account doesn't
seem to work because I can't find a way to have Money account for the
interest paid against it.

Regards,
Bob Brannon

It is essentially a revolving loan, so a credit card is the correct setup.
Interest paid against cannot calculated automatically, I don't think. Just
record the interest as an expense transaction, as you would interest on a
credit card.

The Debt Reduction Planner may aid in your goal if you want to treat it as a
scheduled loan with a specified payoff date. I have no experience with that
function.
--
Chris Cowles
Gainesville, FL



"Bob Brannon" <bbran[at]3rivers.net> wrote in message
news:uU7EDOmgFHA.1148[at]TK2MSFTNGP12.phx.gbl...
Hello,

How does one set up a line of credit account? A credit card account doesn't
seem to work because I can't find a way to have Money account for the
interest paid against it.

Regards,
Bob Brannon

You record interest just like a charge/interest to a credit card.

"Bob Brannon" <bbran[at]3rivers.net> wrote in message
news:uU7EDOmgFHA.1148[at]TK2MSFTNGP12.phx.gbl...
How does one set up a line of credit account? A credit card account doesn't
seem to work because I can't find a way to have Money account for the
interest paid against it.

Hello,

How does one set up a line of credit account? A credit card account doesn't seem to work because I can't find a way to have Money account for the interest paid against it.

Regards,
Bob Brannon