How to think of Debt in Financial Hope
When thinking of debts and liabilities inside of Financial Hope we are talking about accounts that are associated with sums of money you owe someone else.
This is different than an expense in that there is a principle amount that is owed by you as the borrower. There is also an interest rate on the amount that you owe to the lender when considering debts.
Specifically, we will be linking connected accounts that are classified as liability accounts such as your credit card account your mortgage your student loans or a car loan.
Let’s say that you had an American Express credit card that you had connected as a connected account.
When you purchase something with that credit card the system will record that as your debt increasing by the amount that you spent.
This will reflect negatively on your account.
When you make a transfer to pay off the credit card this will be recorded as decreasing debt on your account, which will reflect positively on your account.