2700 — Loans

On the personal chart, Loans covers the everyday debt most households carry — a mortgage, student loans, an auto loan, a personal loan or line of credit. As a liability, it carries a normal credit balance: borrowing increases what you owe, and the principal portion of each payment reduces it.

The distinction that matters most here is the same one that shows up on the business side: only principal reduces this account. Interest is a real cost, and it belongs in Interest Paid (6700), the account this chart ships specifically for mortgage, card, auto, and student-loan interest — split out from the principal so you can see what carrying the debt actually costs you each month.

It is also worth knowing what this chart does not track at all: the asset a loan actually funded, like the home or car itself, has no account here. This personal chart is built around cash flow and spending categories, not a full net-worth statement with real estate and vehicles listed as assets — a real limitation if you want a complete personal balance sheet.

Where it shows up

Shows on the personal balance sheet as a liability. Only the remaining principal belongs here, not the original loan amount or the total interest that will be paid over its life.