After many shared bills and debts between your friends, your debt relationship may look something like this:
In this example, these friends would require 18 payments to settle up with each other. With Billsup, we can figure out how to settle up these debts easily without anyone losing any money. Using "debt transfer" to shuffle money around, Billsup optimizes for the minimum number of transactions to settle up while keeping the payment amounts as low as possible, turning the above graph into something like this:
After the debt transfer, these friends only require 4 payments to settle up with each other! How cool is that!
To perform a debt transfer, you or your friends could go to your "My friends" page after logging in, and choose the "Transfer Debt" option on the top right, which would take you to the "transfer debts" page below.
Once there, select friends that know each other, and click on Analyze to see if a debt transfer can reduce the number of settlements required for your group! As well, you would be able to see how many more friends you would be even with if you choose to proceed. (If you choose friends that don't know each other, they may have to settle up with strangers, so be careful!)
Once saved, each participant can view the debt transfer, which looks something like the screenshot below.
- who was involved in the transfer
- the effect of the transfer
- e.g. here the number of payments required for the group has been reduced by 8!
- at the top you can see how money flowed around to create this debt transfer for you. You can verify that the money transferred in and out from your account actually balances out:
- i.e. sum of the money transferred from you = sum of the money transferred to you
Try it out and let us know if how it works out for you.
What's next?Do you guys need a Billmonk importer? Let us know. If you think you do, send us your billmonk xml files to firstname.lastname@example.org and help us create an importer for you!