Chapter 12. Other People's Money
In This Chapter
Tracking loans, mortgages, and other debts
Setting up liability accounts
Calculating the principal and interest portions of a payment
Recording loan payments
Handling mortgage escrow accounts
Adjusting principal and interest breakdowns
Scheduling automatic loan payments
A popular, financial self-help writer thinks that one of the secrets to financial success is using other people's money: the bank's, the mortgage company's, the credit people's, your brother-in-law's.... You get the idea.
Me? I'm not so sure that using other people's money is the key to financial success. Borrowing other people's money can turn into a nightmare.
Quicken can help you here. No, the folks at Intuit won't make your loan payments for you. But in a way, they do something even better: They provide you with a tool to monitor the money you owe other people and the costs of your debts.
Should You Bother to Track Your Debts?
I think that tracking your debts — car loans, mortgages, student loans, and so on — is a good idea when lenders fail to tell you the amount that you're paying in annual interest or the amount you owe after each and every payment.
If your lenders are doing a good job at keeping you informed, I don't think that using Quicken for this purpose makes much sense. Heck, it's their money. They can do the work, right?
Let me make one more observation. If lenders have half a clue, they send you a United States 1098 tax form at the end of every year. The number shown ...