As much as we would like to live a debt-free life, it's almost impossible not to fall into this trap every once in a while. Debts can become a heavy burden on your financial life unless they are timely and carefully managed. Ignoring your debts won't make them disappear, it will only render it more difficult to close the gaps when it becomes imminent. InEx Finance provides efficient online debt management tools to help you wisely handle, administer and pay off your outstanding debts in time. The following case scenario is intended to give you a clear understanding of how to use InEx Finance debt tool effectively in order to derive maximum benefits and get the best results.


Example:


You want to buy a new car, but your family budget doesn't currently allow for it. You decide to borrow $10,000.00 from a friend at 5% simple interest rate per annum. Your friend lends you the money for a period of 1 year. So by the end of the term the loan amount you should repay will be $10,500.00. The debt can be paid off by several installments or in a lump sum.

Here are the steps to be followed in order to record and manage this loan in your InEx Finance account:

  1. Access Credits tool from the top menu and click on Add Credit from Credits drop-down list.
  2. Give your New Credit a suitable Name (for instance, “Auto Loan from Jack”).
  3. Indicate “Debt” in the Type field.
  4. Choose the corresponding Category and Resource (for instance, “Car” and “Cash”, respectively).
  5. Indicate the start date of your loan term in the Date field (for instance, June 1, 2011).
  6. Enter the Initial Amount (10,000.00) and Currency (USD) of your loan.
    Click on “Additional” link to provide further details about your loan.
  7. Update the final amount of your loan in the Expected return field (10,500.00 USD or 10000*1.05).
  8. Indicate the end date of your loan term in the Return date field (for instance, May 31, 2012).
  9. If you want to receive an automatic Notification from InEx Finance software reminding you of the due debt payment date, choose the desired day and time (for instance, “10 days before” at “10:00”).
  10. Enter one or several Tags (for instance, “car purchase”) and a short Comment to make your New Credit more informative.
  11. When done, click on Create button to add this new debt into your InEx account.

If in a week it turns out that you still need $1,000.00 to finalize the car purchase deal and the same friend agrees to lend you this extra money, then you can increase the amount of the first recorded loan (“Auto Loan from Jack”) rather than adding a separate one. This can be done using Add Credit Addition tool:

  1. Access Credits tool from the top menu and click on Add Credit Addition from Credits drop-down list.
  2. Select “Auto Loan from Jack” from Credit Name list.
  3. Choose the corresponding Category and Resource (generally, these will be the same as in your original Credit, i.e. “Car” and “Cash”, respectively).
  4. Indicate the date of your loan increase in the Date field (for instance, June 8, 2011).
  5. Enter the Amount (1,000.00) and Currency (USD) of your Credit Addition.
  6. Enter some Tags (“car purchase”) and if needed write some specific details about this Credit Addition in the Comment field.
  7. When done, click on Create button to save this Credit Addition into your InEx account.

When you've managed to save some money (for instance, $5,000.00) and want to use it to settle a portion of your outstanding debt, this is how you record such operation into your InEx account:

  1. Access Credits tool from the top menu and click on Add Credit Return from Credits drop-down list.
  2. Select “Auto Loan from Jack” from Credit Name list.
  3. Choose the corresponding Category and Resource (generally, these will be the same as in your original Credit, i.e. “Car” and “Cash”, respectively).
  4. Indicate the date of your debt repayment in the Date field (for instance, October 17, 2011).
  5. Enter the Amount (5,000.00) and Currency (USD) of your Credit Return.
  6. Enter some Tags (“car purchase”) and if needed write some specific details about this Credit Return in the Comment field.
  7. When done, click on Create button to save this Credit Return into your InEx account.

Note: When you pay off the final portion of this debt, don't forget to mark it as “Closed” in the Status field while adding the last Credit Return related to this debt; otherwise “Auto Loan from Jack” will continue to be listed as an outstanding (Open) Credit in your InEx account.


Apart from providing advanced online tools to manage, administer and control your personal debts, InEx Finance has developed powerful reporting tools to help you stay vigilant and keep constant track of your pending debts. You can instantly access, view and analyze the Transactions related to your “Auto Loan from Jack” debt using the following Table Reports:

  1. Credits Report: the Income amount corresponding to the entry “Auto Loan from Jack” equals the total amount of your debt (original amount plus subsequent additions - $11,000.00). The Expense column corresponding to this entry shows the total amount of your Credit Returns ($5,000.00).
  2. Credit Transactions: choose “Auto Loan from Jack” in the Credit Name field to view all Transactions associated with this debt. You can edit or delete any listed Transaction by clicking on the relevant icon corresponding to the concerned entry.

Another way to instantly access important details about your debt is by clicking on “Auto Loan from Jack” entry on the Credits page. The Credit Information section in the right sidebar highlights aggregated data linked to your debt, such as number of related Transactions, Income/Expense amounts and Difference (the remaining amount of your debt you have yet to pay off).


And to ensure that you never forget about the due dates for your debt repayments, InEx Finance software will send you timely reminders based on the Notification parameters selected during Credit creation. Additionally, you may choose to synchronize your InEx Credit Return Notifications with your Google Calendar to have a consolidated view of all your financial commitments. Upon activation of this feature, your Credit Return Notifications will be automatically exported to your Google Calendar as well. If you want to enable Google Calendar sync, just follow the instructions in our Help guide.

Thus on May 21, 2012 (“10 days before”) at 10:00 InEx Finance will send an automatic Credit Return Notification to your mailbox, which will also appear in your Google Calendar under the date May 31, 2012 (the date of your “Auto Loan from Jack” Credit Return).


Updated at August 06, 2012 10:11