Setting Amount Owed (Debt) to Family/Friends

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?

I think using a Shared Tab would be a great way of sorting this:

  • Create a Shared Tab between you and your friend.

  • Add a custom bill for what you owe them (£5,000) and allocate the entire amount of the custom bill to yourself.

  • Every time you pay your friend you can add it to the Shared Tab as a custom bill.

A few improvements to Shared Tabs which would help your suggested situation would be:

I see where you’re going with that and it did cross my mind to use this method, however if you wanted to have that shared tab used for other things (say your partner lends you money but you still go out for food that you put on a shared tab etc.) then it would render it useless.

The other thing is that not everyone is on Monzo so you’re idea assumes they’re on Monzo when they may be with another bank entirely… even though I’d say they should be on Monzo, but that’s me being biased :joy:

I’m pretty sure you can set up multiple Shared Tabs with the same person, so you could create one called “Loan” which just had the payments on it and then create another one for other stuff.

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Possibly yes, and it’s certainly something that could be used as a workaround for those who are conscious of their debts and actually have a Monzo account.

I do think that it takes away from the point of a “tab” and the fact that it won’t work for non-Monzo users.

Some people might not be willing to be part of a shared tab too, whereas keeping it simple to setting the amount owed on a standing order for that particular payee might be better all round seeing as otherwise you’d be keeping it exclusively to Monzo users only.

Looks like me and @awjdean are the only ones who agree with this kind of idea :roll_eyes::joy:

Edit: and Natt who voted for this (sorry, I didn’t see your name until after I posted :flushed:)