Private Revolving Loans

[santafedisplay]

Hi,

I am a cabinet maker who needs to borrow 30,000 from a friend because I

tweaked my back for a few weeks and now have to catch up for the next
few months. I want to be able to make a worksheet that allows me to
give him a known interest rate and then apply the rest to the
principal. I would love it if I could do it on any day of the month
and not have it tied to a monthly period. It is essentially exactly
what credit cards do. Ideally, it would show in columns what was paid,

what day it was paid, how much went to interest for that month, how
much went to principal, and how much principal remains. Incidentally,
this would be great for just capital borrowing in general. The lender
gets a fixed return, but I can write checks willy nilly. As an added
tweak (just like the credit cards) if I don't make the interest in a
month, I would love for the unmet interest to roll to the next month.


Any ideas?


Wouldn't it be cool if the lender could access this info on my webpage
via a password!


(e-mail address removed)


PS If anyone could set this up I would be willing to pay something via

check or paypal.

 

[Fred Smith]

You've really described almost the entire process yourself. You need columns
which show the balance, payments and interest charged.

If you want freedom to pay whenever you want, you're better off using a running
balance method (like a credit card), than allocating each payment to interest
and principal (like a mortgage).

Your columns would be date, payments, charges and balance. Every time you make a
payment, calculate the interest which has accrued. If the starting balance at
the beginning of the month was $25,000 and you make a payment on the 15th, the
interest charge is 25000*15/365*rate. In addition to entering each payment, you
would create an entry at the end of every month (or compounding period if
different) to charge interest to that date.