When you borrow money from a person or financial institution, you usually take out a loan ”a formal agreement to pay the lender back. That loan debt is a liability . In Quicken, setting up a loan simultaneously sets up a liability account to track your payment progress. For example, for most people, owning a house also involves paying a mortgage; owning a car includes making car payments. When you create an account to track an asset such as a house or car, Quicken also walks you through steps for setting up a liability account for tracking loan payments. To create a liability account for your loan, you'll need to know how much you owe on the loan, how many loan payments you owe, and what the interest rate is.
In addition to helping you track loans, Quicken also includes several calculator tools you can use to project loan costs and payments, college costs, and more. This section of the book introduces you to several of the calculator tools that can help you with existing and future loans.