Line of credit

[Mike or Penny Novack]

On 9/13/2016 12:06 PM, Alan Schold wrote:
> The GnuCash Wiki suggests that I should use a credit card account to 
> track a line-of-credit loan. With all the elements (outstanding 
> balance, payment and interest rate) potentially changing could someone 
> give me a few details on how to set up and use such an account? Thanks

You might more easily see the connection if you considered the (common) 
nature of both these sorts of loans and if instead of account type 
"credit card" you thought of account type "loan of varying amount up to 
but not exceeding some limit". The latter would of course be too long a 
name, so the developers chose to use the name of ONE type of loan of 
this sort.

However, possibly your "home line of credit" is a sort that remains 
flexible for M years but then converts to an amortizing mortgage sort of 
loan for a term of N years. If so, deal with THAT issue when and if the 
M years are up. << personally I would close the balance of the "credit 
card" account into a new "mortgage" type of account >>

Michael