The Loan Balances graph shows the balances of your current and future loans (An agreement to borrow or lend money, usually with an interest charge on the amount borrowed.) , not including short-term debt (Money owed to another person or company, such as loans, credit card balances, or mortgages. ) (such as credit card debt) that you've entered in your debt reduction plan.

For each loan, you can expect the loan balance to decrease gradually over time as you make payments. Only the principal (The amount still owed on a loan. Also, the part of a loan payment that reduces the loan's outstanding balance.) component of your payment decreases the loan balance; the interest is an expense that goes to the financial institution that gave you the loan. Your loan balance may disappear altogether when you make large balloon payments or if you pay off a loan entirely when you sell the associated asset (An item of value that you own. Assets can be tracked in Money by using asset accounts.) (such as when you sell a house and pay off the mortgage with the proceeds).

You can enter loans and other liabilities on the Loans & debt page in the Lifetime Planner. To view a forecast chart, see the related topics below.