Lets make sure we know what a liability is.

A Liability can be defined as something that you owe. This means that if you have a Mortgage on your house, for instance, the total amount of what you owe on the mortgage is your Mortgage Liability.

Whereas, the amount you pay monthly for the mortgage is your monthly mortgage expense. (This should be listed under expenses on your budget).

So, for this section, list all the long term debt that you have and the current balance owed on each of them.

For budgeting, long term debt can be anything that you owe an additional balance on after you make a monthly payment.

Here is a list of items that may be Liabilities.

Mortgage balance including second mortgages
Car Loan balance
Other loan balances
Student Loans
Home Improvement Loans
Consumer Loans (for electronics (TVs, computers, etc), furniture, lawn equipment, etc
Balance owed for back taxes that are being paid in installments
Balance owed for medical, dental or eye doctors.

Just because your loan is not listed doesn’t mean it is not your liability. List the balances on anything you owe. There are NO Exceptions!

Your Liabilities are one half of your Net Worth. See What is Net Worth?