6700 — Interest Paid

Interest is the rent you pay on money you have borrowed, and in a household book it is worth seeing on its own. Most people know roughly what they owe. Far fewer know what carrying that balance costs them each month, because the interest is buried inside payments that also repay principal.

Split it and the picture changes. A $400 card payment where $340 is interest is a very different fact than a $400 payment where $40 is. The first tells you the balance is barely moving; the second tells you it is on its way out. Pulling interest into its own line is the single fastest way to see which of your debts is actually expensive.

Post the interest half of any payment here and the principal half against 2700 Loans, so the loan balance falls by what you genuinely repaid. Your statement shows the split for cards and mortgages alike.

Mortgage interest belongs here too, though be aware a mortgage payment is often three things rather than two — interest, principal, and an escrow amount for taxes and insurance that is neither. Escrow is not interest and should not land in this account.

Where it shows up

Interest Paid appears among your expenses and reduces what is left over each month. Looked at over a year it is often the most sobering line in a household book, because it is money that bought nothing — which is exactly why it is worth separating rather than leaving it folded into a payment.