Keeping track of debts and receivables isn't only for businesses. Anyone who lends money to a friend, family member or neighbour, buys something in instalments or is waiting to be paid for a job needs a system for it. When it isn't clear who owes whom, how much and by when, both money and relationships can suffer.

Short answer: Create a record for every debt and receivable with the person, amount, currency, transaction date and due date. Link the due date to a calendar and set a reminder a few days before. Update the remaining amount as partial payments come in, track instalment debts one instalment at a time, and review your overall position once a month.

1. Separate debts from receivables

The foundation of tracking is keeping the two directions apart:

• Debt: Money you owe someone else.
• Receivable: Money someone else owes you.

Mixing them up gives you a false picture of where you stand. You can have both a debt and a receivable with the same person; keeping two separate records makes it clear who paid what.

2. What every record should include

A complete debt or receivable record includes:

• Person or company name: Add a distinguishing detail if two people share a name.
• Amount and currency: Don't add up debts in different currencies; keep each in its own currency.
• Transaction date: The day the money was lent or borrowed.
• Due date: The day the payment is expected.
• Category: For example personal loan, rent, shopping or service fee.
• Short description: A note like "half of the holiday flights" to remind you what it was for.

Example record: Receivable · Sarah · £240 · lent on 10 Oct 2026 · due 10 Nov 2026 · category: personal loan · note: "Laptop repair".

3. Link the due date to a calendar

The most commonly forgotten part is the due date. Knowing the amount isn't enough; you also need to record when it should be paid or collected. Once due dates are on a calendar, you can see what's coming as each day approaches.

4. Track instalment debts one instalment at a time

An instalment debt doesn't have a single due date; each instalment has its own date and amount. Dividing the total by the number of instalments and adding each one to your calendar shows you from the start what you'll pay each month.

Example: A £1,200 debt repaid in 6 equal monthly instalments starting on 15 November means a £200 payment on the 15th of every month until 15 April. If the amount doesn't divide evenly (for example £1,000 over 3 instalments), the odd penny is usually added to the first or last instalment.

5. Record partial payments straight away

Debts aren't always settled in one go. When part of a debt is paid, record the date and amount of the payment and update the remaining balance. Not tracking partial payments is one of the most common causes of disagreement: one person remembers paying £50 and the other doesn't. If the payment was made by bank transfer, note its reference too.

6. Keep overdue and settled records apart

Records that are past their due date but still open are the ones to prioritise. Mark them as "overdue" so they stand out. Rather than deleting fully paid records, mark them as "settled"; if a question comes up later, you'll still have the history.

7. Review your overall position once a month

Beyond individual records, it's important to see how much you owe in total and how much you're owed:

• Total receivables − total debts = your net position.
• Total each currency separately; converted totals can be misleading as exchange rates change.
• Look at the debt payments and collections due next month to plan your cash flow.

For most people, reviewing this once a month is enough. To build your monthly budget around it, see How to plan a monthly budget.

8. Put large amounts in writing

Asking for something in writing can feel awkward in personal relationships, but for larger amounts a short document signed by both people, or at least a bank transfer with a clear reference, prevents misunderstandings later. It should include the amount, date, repayment plan and both people's details. If you need to take legal action over a business debt or an unpaid loan, speak to a legal professional.

Common mistakes

• Not recording the due date: You know the amount but forget when it's due.
• Skipping partial payments: It leads to disputes over what's left.
• Adding up different currencies: Your overall position looks wrong.
• Deleting settled records: You lose the evidence of what happened.
• Scattering records: Some end up in a notes app, others in messages.

Tracking debts with BudPlan

In BudPlan you can create each debt and receivable with a person or company, amount, currency and due date, and split it into instalments if you like. As you record partial payments, the remaining amount updates; a fully paid record shows as Settled, and one that's past its date and unpaid shows as Overdue. Due dates appear on your calendar, and you can choose how many days before the due date to be reminded. The My Budget screen also shows your total debts and receivables separately for each currency.

Last updated: 7 October 2026

Related guides:

• How to keep a personal debt tracker
• A calendar system so you never miss a due date
• How to plan a monthly budget