Thinking about how to manage debts, and even more so, debts to family and/or friends, I wanted to put forward an idea in setting an amount owed to someone you setup a standing order for where, with every month that goes by, the amount you owe to that person goes down in line with what you pay.
Let’s say I owe £5k to my friend. I setup a standing order for £200 to my friend every month and set the amount (whilst setting up the standing order) of £5k. With every £200 paid, the £5k goes down and tells you what’s owed (I.e. £5000 minus £200 = £4800).
To make sure any overpayments are caught, you could add a “Debt” category so that if you make an additional payment to the person you owe money to and categorise it as “Debt”, it deducts it from the amount you’ve set as being owed to that person for debt.
Does this sound like something others would find helpful too?