In this guide you can learn how to add debts, edit debt details or delete a debt!
Adding a debt to the Net Worth report
- Select + Debt
- Select the debt type, e.g. Vehicle loan, Investment Loan, Loan or Other debt
- Enter the details of the debt
- If you want to link the debt to an asset, select Yes to the option Do you want to group this debt with an existing asset?
- If you selected Yes, click on the Save & continue button. You will be taken to another window. See the Managing money owed toward an asset section of this user guide below
- If you selected No, proceed to the next step
Otherwise, select No
- If you want to add an interest or depreciation rate for the debt, select Yes to the option Do you want to set interest/depreciation for this debt?
- If you select No, click Save to finish adding the debt and go back to the Net Worth page
- If you select Yes, click the Save & continue button and proceed to the next step
Otherwise, select No
- You can then add an interest or depreciation rate to the debt, including the frequency of when the rate will be applied. See: Appreciation and depreciation settings.
- Click Save and reload Net Worth to add the debt to your Net Worth report
Note
The current value will override any interest applied between the purchase date and the current date (the date the debt was added to PocketSmith).
If you'd like the current balance to reflect the original draw-down balance + interest follow the steps outlined here
Interest and depreciation settings for a debt
Select the rate and frequency at which interest accrues on your debt.
- Select the Debt from the Net Worth page
- Click into the Interest & depreciation tab
- Customise the settings as required
- Click Save and reload Net Worth
Editing the details of a debt
Once you have added a debt to the Net Worth page, you can edit it at any time.
- Head to the Net Worth page (Reports > Net Worth)
- Click on the name of the debt
- Update the details as necessary and click Save
Note
You can only update the value of a debt on the current date or on the original purchase/drawdown date from the Net Worth page.
In order to update the value on a different date, it's best to use the Calendar page.
This means that any changes to the value/balance of the debt will be accurately reflected on the calendar, and, ultimately, in your Net Worth graph.
Updating the value of a debt from the Calendar page
There may be times when you would like to update the value of a debt on a particular date.
It's best to do this via the Calendar page.
- Head to the Calendar page
- Select the debt from the sidebar
- Navigate to the date you'd like the value change to occur on, and click the balance on that day
- Enter the new value for the debt, then click Update Balances
- The value of your debt will now be updated from that day, without altering any previous balances
Note
If you notice your current balance has not been updated, you will need to delete any blue flag budget correction events that occur between the date of the value change, and the current date.
To do this, just click on the blue flag event, and click Delete Balance
Please note that blue flag forecast adjustments are only visible when 'Show actuals in history' is unticked
Deleting a debt
There may be times when you'd like to delete a debt. For example, if you've accidentally added a debt as an account and as a debt.
Please note that this action is permanent, so please be sure that you really want to remove the debt before doing so!
You can delete the debt as follows:
- Head to the Net Worth page (Reports > Net Worth)
- Click on the debt that you wish to delete
- Then select 'Delete this debt'
- When prompted click YES, I WANT TO DELETE THIS DEBT
- In the confirmation field, type DELETE then click CONFIRM
