Line of credit

[Richard Bishopp]

My first and only exposure to double entry is gnucash so I understand the
initial confusion.  In the line of credit scenario I used a loan account
like my mortgage.  Seemed natural to me since the home equity line was
based on the value of the home and the equity already available.  I also
use a simple savings like account for reward points and gift cards. So I'm
sure anything will work fine if it makes sense to the user.
Rich...

sent from my electronic leash.

On Sep 19, 2016 3:15 PM, "Mike or Penny Novack" <mpnovack at mtdata.com> wrote:

> 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
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