Debt payoff & IOU tracking guide
Whether you are paying down balances with the 20% savings bucket from the 50/30/20 rule or keeping a ledger of money lent to friends, here is the straightforward math.
1. Months to clear a 0%-interest personal loan or IOU
| Balance Owed | $100/mo | $250/mo | $500/mo | $1,000/mo |
|---|---|---|---|---|
| $1,000 | 10 mo | 4 mo | 2 mo | 1 mo |
| $2,500 | 25 mo | 10 mo | 5 mo | 3 mo |
| $5,000 | 50 mo | 20 mo | 10 mo | 5 mo |
| $10,000 | 100 mo | 40 mo | 20 mo | 10 mo |
| $15,000 | 150 mo | 60 mo | 30 mo | 15 mo |
2. Debt Snowball vs. Debt Avalanche
| Method | Pay Extra Toward | Best When |
|---|---|---|
| Debt Snowball | Smallest balance first | You have several small IOUs or bills and want quick wins |
| Debt Avalanche | Highest interest rate first | You want to minimize total interest paid mathematically |
Track Lent & Borrowed in Money Manager
See total Lent (“You get”) and Borrowed (“You owe”) right on your home screen. Track one-time IOUs or multi-payment loans 100% offline.
Questions
- What is the difference between Debt Snowball and Debt Avalanche?
- Both methods pay the minimum on every debt except one target debt. Debt Snowball targets the smallest balance first so you eliminate individual debts quickly. Debt Avalanche targets the highest interest rate first so you pay less total interest.
- How do I track money I lent to friends or borrowed from family?
- In Money Manager, open Loans / Debt Tracker from the Home screen or More tab. Log a One-Time Loan (Lent or Borrowed) for simple IOUs that settle in one tap, or a Long-Term Loan when repayments happen over several installments.
- Does settling a loan double-count my income or expenses?
- No. One-time Lent and Borrowed records track what is owed until you mark them settled, keeping your monthly spending breakdown clean.