In short
- Write the loan down the day you make it, not when you remember.
- Log each repayment with its date and amount: what's left is loan minus repayments.
- One loan per line: don't mix different dates or people.
- Lending isn't spending: it doesn't count as an expense in your budget.
What to write down when you lend money
- Who and how much: the exact amount, not "about a hundred."
- The date: the day you sent the money.
- What it's for: rent, a car repair, a trip. It keeps it apart from other loans.
- How they'll pay you back: all at once by a date, or in installments, how much and how often.
Text them that agreement. A small loan between friends doesn't need a contract, just the same terms in writing on both phones.
An example with partial repayments
On March 1, Emma lends Jake $600 for an apartment deposit. He'll pay her back in parts.
| Date | Entry | Left |
|---|---|---|
| March 1 | Loan of $600 | $600 |
| March 5 | Repayment of $150 | $450 |
| March 20 | Repayment of $100 | $350 |
| April 10 | Repayment of $200 | $150 |
Jake has paid back $450 and owes $150. If Emma lends him another $80 in May, it goes on a new line, so each loan closes on its own. If weeks go by with no payment, see how to ask a friend to pay you back.
Do it in Divall with Owed to me & I owe
In DivMe, your month in Divall, the Owed to me & I owe tool keeps the record:
- Add the loan with the person and the amount; it works for money you borrow, too.
- Log each repayment: the app shows what's left.
- Whoever lent the money confirms each payment, and if you pick an account, its balance moves.
- Loans don't count as spending or income, so your month stays accurate.
Owed to me & I owe is free for up to 3 open loans. With Divall Pro, DivMe is also stored in the cloud so you can use it on the web and other devices. Divall is free to start: write down what you're owed today and stop keeping it in your head.
Frequently asked questions
Does money I lend count as an expense?
No. The money is still yours, someone else just has it. If you log it as spending, your month looks worse than it is, and the repayment will look like income it isn't.
What if I don't remember how much they've paid back?
Go through both of your transfers and texts and rebuild the list of repayments with dates. Share it and ask them to confirm. From then on, log each repayment the same day.