Question: Is there a way to record essential/minimum loan repayments, and then the number of extra repayments separately
As part of the MoneySMARTS system, we highly recommend paying only the minimum amount due on your loan and allocating any extra funds to ‘offset’ accounts. This approach effectively functions as making early loan repayments or additional payments, while allowing you to retain full control of your cash.
Initially, we hadn’t incorporated a mechanism to separately account for additional repayments. However, if you wish to include them or if you don’t currently have access to an offset facility, we suggest consolidating these payments into a single total payment on the borrowings page. Our aim with moneySMARTs is to automate and simplify the process of managing your surplus, and having inconsistencies in these payments would actually increase your daily workload.
To ensure you don’t miss out on any potential surplus, we recommend estimating your total annual repayment amount, converting it into a monthly figure, and adding it to your minimum monthly repayments. This approach helps automate the process and aligns with the expected amounts you regularly allocate to your loan jar.
We advise against using an expense provision to accommodate your additional repayments, as this method does not accurately reflect the reduction in your loan balance and requires extra effort from you to track every month.